TUERIDEI, Seth Woulf
Internal Audit Unit, Office of the Vice-Chancellor, Niger Delta University,
Wilberforce Island, Nigeria
stueridei@gmail.com
OGOUN, Stanley
Department of Accounting
Niger Delta University, Wilebrforce Island, Nigeria
stanleyogoun@ndu.edu.ng
ABSTRACT
This study examined the influence of domestic investors on stock market capitalization in Nigeria.
Premised on an ex-post facto research design, secondary data obtained from the Nigerian Exchange
Group’s Investment Reports from 2013 to 2020 for domestic investors at the aggregate level and market
capitalization statistics from the Nigerian Exchange Factbook covering the period, 2013 to 2020.
Domestic investors comprised domestic retail and domestic institutional investors, while market
capitalization was used as stock market performance metric. The descriptive statistics was subjected to
inferential analysis via the regression tool for the study data. The outcome of the study sums up that
domestic retail and domestic institutional investors influence market capitalization. Therefore, the study
concludes that there exists a strong relationship between domestic investors and stock market
capitalization in Nigeria. On this premise, the study recommends that the Nigerian Exchange Group Ltd,
as managers of the stock market, should initiate policies that would boost the level of participation of
all categories of domestic investors through deliberately crafted policies that assure their confidence in
the stock market as to shore up market capitalization.
Keywords: Domestic investors, institutional investors, market capitalization, stock market