| Abstract [eng] |
THE IMPACT OF STATE BUDGET ON FINANCIAL MARKETS (USING NIGERIA AS A CASE STUDY) Priscilla Ifeoluwa, Awosiji Master Thesis Finance and Banking Master Programme Faculty of Economics and Business Administration, Vilnius University Supervisor: Professor Laima Urbšienė, 2021 SUMMARY The main purpose of this master thesis is to determine the impact of state budget on financial markets using Nigeria as a case study. The Master thesis consists of three main parts; the literature review which covers the theoretical construct, the research methodology, and finally the data analysis, its results, a conclusion, and recommendations. Literature analysis reviews the development of budgetary and management theories, presents the main concepts of organization-based budget theory, introduces crowding-out effect theory and the Ricardian-Equivalence theory. The researcher also shows the criticism and relevance of these theories to the study. Following the literature analysis, the author examined the relationship between state budget and financial markets using secondary data. Secondary data was obtained from annual reports and accounts of the Nigerian government for a period of twenty (20) years from 2001 to 2020. The data were validated and reliable as it has been audited and approved by regulatory bodies. Both descriptive and inferential analyses were conducted in answering the research questions. Furthermore, the results of the research were compared to the similar studies performed in other developed and developing countries. The results of the research were statistically processed with the SPSS programmed batch. The study found that state budget had significant effect on the financial market in Nigeria (Adj. R2 =0.136; F (3.622); p=0.00). The result of this study indicates that state budget has a positive significant effect on exchange rate and money supply in determining the financial market performance in Nigeria, while the other two performance measures, inflation rate and interest rate, have little influence on financial market performance in Nigeria. The conclusions and recommendations summarize the main concepts of literature analysis as well as the results of the performed research. The author believes that the results of the study could give useful guidelines to the country towards setting up a sustainable budget that would help the country improve its financial market. |
