Attitude of Investors to Capital and Money Market Investments Before and After Financial Crisis: Evidence from Nigeria
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In the second half of 2008, the world experienced financial and economic storm. Value of investments crashed
and investors lost money to the extent of their exposure to financial markets. In the light of gradual global
economic recovery from the effect of the financial crisis in recent times, the research comparatively studied
the attitude of investors to investments before and after the financial melt-down in Nigeria. Secondary data
sourced from the Nigerian Stock Exchange (NSE) for the period 1961 to 2011 were analysed using statistical
procedures such as correlation, multivariable regression and t-test. The study found out that there was
significant change in the attitude of investors before and after the financial crisis to investments, as investors
switched funds from capital market securities in favour of money market instruments which guaranteed fixed
interest income. Despite the fact that the capital market is gradually recovering; investors still demonstrate
low confidence in the market. It was therefore recommended that the NSE should strive to regain and retain
common investors’ confidence in the primary market through improvement in their corporate performance.
Keywords
HF5601 Accounting, HG Finance