Mutalib Anifowose, Salami Suleiman


Return-volume relationships are of common interest as they may unearth dependencies that can form the basis of profitable trading strategies, and this has implications for market efficiency. This study examines relationship between trading volume and returns volatility in Nigerian capital market using daily stock data of 40 equities listed on the floor Nigerian Stock Exchange NSE for the period January 2009 to June 2012.Engle-Granger bivariate causality test was adopted to analyze the secondary data that were extracted from daily official price list of NSE. The study finds evidence of causality run from stock return to trading volume. It is therefore, recommended among others  that the financial analysts and advisers should come up with their buy and sell recommendations to their client by studying the past securities prices so as to formulate efficient and effective portfolio for them.

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