Athanasius C. Nwachukwu, Sylvester Ekhamheye, Kelechi P. Uzoma


Many investment resolutionscenter on theprediction of upcoming events that remainsobvious or hidden. Normally, asset pricing models proposes anoptimisticconnection between a stock portfolio’s investment returns and capital market instability, which is often modeled by the asset price variations. The study captured the period 1990-2019. Thispaper used GARCH and ARCH to observe the association between instability of capital market and investment decision. Having evaluated the diverse models postulated by the statistical bulletin of Central Bank of Nigeria 2019 data, discovery revealed that the use of GARCH mean shows a positive and significant relationship existingbetween investment decision and capital market instability, while a negative relationship is seen in the GARCH model. We suggest that the manpower and processes of the Securities and Exchange Commission (SEC) should be further strengthened and also market operators should avoid bad news.


Capital market, investment decision, GDP

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