Impact of Corporate Crime on Developing Capital Markets: Case Study of Nigeria

Abstract: Capital market has been globally acknowledged as one of the main driving forces for the growth of modern national economy in this era of globalization and liberalization. It provides an avenue for both local and international potential investors to access the wealth of a particular country through buying and selling of financial instruments such as shares, bonds, etc. One of the basic requirements for the market to attract investors is that it must be seen to operate under certain level of transparency built on trust and integrity This paper examines the impact of corporate crime within the Nigeria's capital market and its attendant effects on the national economy. The findings of the study reveals that, the cumulative effects of crime taking place within the Nigeria's capital market is seriously having negative impact on its development and the national economy. It is therefore the position of the paper that regulatory agencies of the market should cooperate with one another to ensure that perpetrators of the crime who are indicted or found to have committed such crime in a particular sector are not allowed to operate in another sub- sector of the economy.