Financial Internet Quarterly FFinancial Internet Quarterly 2020, vol. 16 / no. 2 Financial Internet Quarterly Editorial Office University of Information Technology and Management in Rzeszów ul. Sucharskiego 2, Room 248, 35-225 Rzeszów Telephone number: +48 017 866 11 85 Editor-in-Chief Tomasz Skica, PhD, University of Information Technology and Management in Rzeszow (Poland) Advisory editors Joanna Podgórska, PhD, University of Information Technology and Management in Rzeszow (Poland) Jacek Rodzinka, PhD, University of Information Technology and Management in Rzeszow (Poland) Secretary Editorial secretary and technical corrections: Małgorzata Leśniowska-Gontarz, MSc, University of Information Technology and Management in Rzeszow (Poland) e-mail: [email protected] Layout and paging: Karolina Olechowska, University of Information Technology and Management in Rzeszow (Poland) Repositories: Karolina Palimąka, MSc, University of Information Technology and Management in Rzeszow (Poland) English proofreading editor: Catherine Lockhead, MBA Section Editors Agata Gemzik-Salwach, PhD, University of Information Technology and Management in Rzeszow (Poland): banking, financial analysis Andrzej Cwynar, Assoc. Prof., PhD, University of Economics and Innovation in Lublin (Poland): corporate finance, capital structure, managerial accounting Alcina Augusta de Sena Portugal Dias, PhD, Polytechnic Institute of Porto (Portugal): auditing, corporate governance, financial performance Hanna Szymborska, PhD, Birmingham City University (United Kingdom): financial economics, economic policy analysis, applied econometrics Eva Ropero Moriones, PhD, European University of Madrid (Spain): international finance, applied and financial econometrics, financial analysis Shibeshi Kahsay, PhD, Higher Colleges of Technology in Abu Dhabi (United Arab Emirates): financial economics, monetary policy Fahit Ferhan Benli, PhD, Istanbul Commerce University (Turkey): banking, financial risk, auditing Otakar Schlossberger, Assoc. Prof., PhD, University of Finance and Administration (Czech Republic): e-banking, regulation of financial markets, financial crimes Domenico Scalera, PhD, University of Sannio (Italy): accounting, fiscal policy, taxation Wendy Wang, PhD, University of Maryland Eastern Shore (USA): corporate governance, executive compensation, earnings management, financial distress Statistical Editor Izabela Cichocka, PhD, University of Information Technology and Management in Rzeszow (Poland) Editorial Board Krzysztof Waliszewski, Poznań University of Economics and Business (Poland) Ziemowit Bednarek, College of Business, California Polytechnic State University (USA) Aleksander Chłopecki, Warsaw University (Poland) Paul H. Dembinski, Observatoire de la Finance (Switzerland)* Lenka Dubovická, University of Central Europe in Skalica (Slovakia) Gary Dymski, Leeds University Business School, University of Leeds (United Kingdom)* Aleksandra Duliniec, Warsaw School of Economics (Poland) Leszek Dziawgo, Nicolaus Copernicus University (Poland) Javed Ghulam Hussain, Birmingham City Business School, Birmingham City University (United Kingdom) Alexander Ilyinsky, The Financial University under the Government of the Russian Federation (Russia) Beata Javorcik, University of Oxford (United Kingdom) Ryszard Kokoszczyński, Warsaw University (Poland) Gábor Kürthy, Corvinus University of Budapest (Hungary)* Wojciech Misiąg, University of Information Technology and Management in Rzeszow (Poland) Vladimir Modrak, Technical University Kosice (Slovakia) Vladimir Momot, Alfred Nobel University Dnipropetrovs’k (Ukraine) Krzysztof Opolski, Warsaw University (Poland) Janusz Ostaszewski, Warsaw School of Economics (Poland) Wiktor Patena, Higher Colleges of Technology w Abu Dhabi, (United Arab Emirates)* Primož Pevcin, University of Ljubljana. Faculty of Administration (Slovenia) Wiesław Pluta, University of Zielona Góra (Poland) Izabela Pruchnicka – Grabias, Warsaw School of Economics (Poland) Irena Pyka, University of Economics in Katowice (Poland) Jerzy Różański, University of Łódź (Poland) Javier Santomá, IESE Business School, University of Navarra (Spain) Malcolm Sawyer, Leeds University Business School, University of Leeds (United Kingdom)* Viola Šebestíková, VCB-TU Ostrava (Czech Republic) Zdzisław Siroja, Vinnitsa Cooperative Institute (Ukraine) Janusz Soboń, Maritime University of Szczecin (Poland) Predrag Stančić, University of Kragujevac (Serbia) Aleksandr Stepanov, Moscow Institute of State and Corporate Management (Russia) Jan Sulmicki, Akademia Finansów i Biznesu Vistula (Poland) Andrzej Szopa, Cracow University of Economics (Poland) Tomasz Świst, National Bank of Poland & Warsaw University (Poland) Danuta Aniela Tomczak, Ostfold University College, (Norway) Jan Toporowski, SOAS, University of London (United Kingdom) and the University of Bergamo (Italy)* Urmas Varblane, University of Tartu (Estonia) Tatiana Varcholová, University of Economics in Bratislava (Slovakia) Alessandro Vercelli, University of Siena (Italy)* Nikolay Volgin, Russian Academy of Public Administration in Moscow (Russia) Zahari Zahariev, The Slavyani Foundation in Sofia (Bulgaria) Dariusz Zarzecki, University of Szczecin (Poland) *Cooperation with these scholars was made possible by the program “Reaching out to foreign reviewers” funded by the Ministry of Science and Higher Education to disseminate progress in science (based on agreement:725/P-DUN/2016). TABLE OF CONTENTS IMPACT OF OIL PRICES ON STOCK MARKET DEVELOPMENT IN SELECTED OIL EXPORTING SUB-SAHARAN AFRICAN COUNTRIES Adewale T. Muritala, Adeniyi M. Ijaiya, Ahmed O. Adekunle, Ibraheem K. Nageri, A. Bolaji Yinus ................................... 1 DIFFERENCES BETWEEN NEW IFRS AND US GAAP LEASE STANDARDS AND THEIR EFFECTS ON PUBLICLY LISTED COMPANIES Karolina Winiarska .......................................................................................................................................................... 14 IS BIGGER BETTER? THE IMPACT OF THE SIZE OF BANKS ON CREDIT RATINGS Patrycja Chodnicka-Jaworska .......................................................................................................................................... 24 TRADE FAIR FEE AS A SOURCE OF INCOME FOR THE BUDGETS OF MUNICIPALITIES IN POLAND ON SELECTED EXAMPLES Cezary Szydłowski ............................................................................................................................................................ 37 A CRITIQUE OF BANGLADESHI ADOPTION OF BASEL TYPE CAPITAL REGULATION: AN INSTITUTIONAL VIEW A K M Kamrul Hasan, Yasushi Suzuki ............................................................................................................................... 49 REGIONAL POLICY FINANCIAL INSTRUMENTS IN THE SZCZECIN METROPOLITAN AREA Elżbieta Ociepa-Kicińska .................................................................................................................................................. 66 REGIONAL DIFFERENTIATION FOR LIFE QUALITY OF THE POPULATION IN UKRAINE UNDER INNOVATIVE GROWTH Natalia Burkina, Taras Furman, Janusz Soboń, Kostiantyn Sapun ................................................................................... 73 www.finquarterly.com University of Information Technology and Management in Rzeszów Financial Internet Quarterly 2020, vol. 16 / no. 2, p. 1-13 DOI: 10.2478/fiqf-2020-0008 IMPACT OF OIL PRICES ON STOCK MARKET DEVELOPMENT IN SELECTED OIL EXPORTING SUB-SAHARAN AFRICAN COUNTRIES ADEWALE T. MURItaLA1, ADENIYI M. IJAIYA2, AHMED O. ADEKUNLE3, IBraheeMK . NAGERI4, A. BOLAJI YINUS5 Abstract This study examines the dynamic impacts of oil prices on stock market development in four oil exporting sub-Saharan African countries in the period of 1989-2015. The Arbitrage Pricing Theory (APT) is used as the theoretical framework where stock market prices are hypothesized to be fully reflective of all available information. Static panel data (Pooled OLS, panel Fixed Effect Model, panel Random Effect Model) and dynamic panel model of Generalized Method of Moments (GMM) were employed in the estimation. The estimation of the static panel model shows that oil prices, exchange rates, gross domestic product, inflation and the corruption index have a positive and significant impact on stock market development. However, there is a slight improvement from the estimation of the GMM dynamic panel model which confirmed that oil prices, exchange rates, gross domestic product, investment, inflation and the corruption index have a positive and significant impact on stock market development. The study therefore recommends that investors in selected the Sub- Sahara Africa (SSA) stock market need to be cognizant of the varying impacts of macroeconomic indicators, particularly those that have been found to exert strong influence on stock returns like oil prices, exchange rates, inflation and the corruption index. JEL classification: Q43, G10, N27, C23, O55 Keywords: Oil Price, Stock Market Development, Panel Data, Africa Received: 06.03.2020 Accepted: 06.05.2020 1 Department of Accounting and Finance, Fountain University Osogbo, Nigeria, e-mail: [email protected], ORCID: 0000-0002- 9946-0159. 2 Department of Finance, University of Ilorin, Kwara State, Nigeria, ORCID: 0000-0002-6981-0924. 3 Department of Accounting & Finance, Kwara State University, Molete, Kwara State, Nigeria, ORCID: 0000-0003-1603-6705. 4 Department of Accounting& Finance, Al-Hikmah University, Kwara State, Nigeria, ORCID: 0000-0002-5569-2169.