This paper studies the macroeconomic determinants of corporate bond market development with respect to the Nigerian bond market. Corporate bond market capitalization was used as the endogenous variable while macroeconomic variables form the exogenous variables of the study. The time series data generated over a period of 33 years (1980-2013) were analyzed using descriptive statistics, while the ordinary least square regression techniques involving multiple regression was applied to test the level of significance of the variables. Overall, the result reveals that fundamental macroeconomic factors such exchange rate, savings, inflation rate, banking sector development, interest rate, fiscal balance, bond yield and foreign direct investment are main drivers of corporate bond market development in Nigeria. The results further revealed that the macroeconomic factors have no common stimulating pattern in driving the corporate bond market for development. Savings and exchange tends to be more significant than other macroeconomic factors within the period under review. Thus, macroeconomic factors matter a lot in the development of corporate bond in Nigeria.

This paper studies the macroeconomic determinants of corporate bond market development with respect to the Nigerian bond market. Corporate bond market capitalization was used as the endogenous variable while macroeconomic variables form the exogenous variables of the study. The time series data g...