Financial liberalization, stock market, volatility, investors, capital accumulation.


This study attempted to investigate the impact of financial liberalization on stock market volatility in Nigeria. This purpose was achieved by hypothesizing that financial liberalization has a significant impact on stock market volatility in Nigeria. This was supported by a review of theoretical and empirical literature on the subject-matter. A longitudinal survey design which covers the period of 1981 – 2012 was employed in generating data on financial liberalization and stock market volatility from the central Bank of Nigeria Statistical Bulletin. The data generated were analysed using the regressing analysis. The findings revealed that financial liberalization has a negative but insignificant impact on stock market volatility in Nigeria. It was therefore recommended that a good knowledge of financial liberalization is needed to enable financial experts and economy analysts effectively predict stock prices in order to stabilize the stock market.

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