244 research outputs found
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FIRM ATTRIBUTES AND STOCK PRICE OF LISTED FINANCIAL SERVICE FIRMS IN NIGERIA
Full text linkThe Nigerian financial services sector, a critical component of the nation's economy, faces challenges in navigating the intricate interplay between share prices, dividend policies, and leverage. Despite the sector's pivotal role in mobilizing long-term resources and sustaining investor confidence, there exists a gap in understanding how specific firm attributes, particularly dividend policy and leverage, influence share prices over an extended period. Therefore, this research aims to address these gaps by examining the intricate relationships between dividend policy, leverage, and share prices in Nigerian financial service firms over a 15-year period from 2008-2022, employing robust methodologies for a more comprehensive and applicable understanding of the challenges and opportunities in the sector. The theoretical framework draws on signaling theory, providing insights into the complexities of stock prices and the strategic use of signals by managers. The study's employed correlation research design, multiple regressions on panel data, and robustness tests to ensure the validity and reliability of the statistical inference. The findings reveal a significant inverse relationship between share prices and leverage, emphasizing the importance of prudent debt structure management for investor confidence. Conversely, a significant and positive correlation is observed between share prices and dividend policy, underscoring the potential value enhancement through a robust dividend distribution plan. Based on the findings, the study recommended that, management should highlight the need for financial institutions to strike a balance between meeting obligations and minimizing risk exposure. Transparent communication, optimal debt management, and cultivating strong dividend policies are crucial. Policymakers and regulators should consider these findings to create a more robust and investor-friendly financial environment in Nigeria
COMPETITOR FINANCIAL STATEMENT PERFORMANCE APPRAISAL ANDFINANCIAL PERFORMANCE OF QUOTED MANUFACTURING FIRM IN NIGERIA
Full text linkfocus of the study is on competitor financial statement performance appraisal and its relationship with financial performance of manufacturing companies in Nigeria. The population of the study is the sixty-nine quoted manufacturing companies in the Nigerian Exchange Group, while sixty (60) of them were used as sample using the purposive sampling technique. The scope of the study covers the period 2014 -2023. Ex-post facto research design was adopted, with data obtained from the financial statements of the different companies involved in the study. Four (4) dimensions of financial performance were used for this study, which are net profit before tax, earnings per share, return on equity and return on assets against competitor financial statement performance appraisal. This led to the formulation of four (4) hypotheses that were tested using spearman rank correlation for the analyses. The results indicated that, while net profit before tax, return on equity and return on assets have significant relationship with competitor financial statement performance appraisal, earnings per share on the other hand, showed an insignificant relationship with competitor financial statement performance appraisal. The study therefore recommended that for companies intending to improve their net profit before tax, return on equity and return on assets, managers of manufacturing firms should engage more on competitor financial statement performance appraisal, while for companies intending to shore up the value of their earnings per share, competitor financial statement performance appraisal is not an option to engage in
MACROECONOMIC VARIABLES AND STOCK MARKET PERFORMANCE IN NIGERIA
Full text linkThis study examined macroeconomic variables and stock market performance in Nigeria, using secondary data from the Central Bank of Nigeria. The study adopted the Autoregressive Distributed Lag Model (ARDL) technique to analyze the data obtained for the study. Furthermore, the results revealed that exchange rate fluctuations significantly affect stock market performance with a p-value of (p<0.01). Interest rate is also significantly related to stock market performance, with a p-value of (p < 0.01). Inflation also significantly affects stock market performance with a p-value of 0.01. Finally, Gross Domestic Product significantly impacts the performance of the stock market in Nigeria with a coefficient value of (0.0000000137) and a p-value of (0.0269). Based on the findings, the study concluded that macroeconomic fundamentals exert a substantial and measurable influence on stock market performance in Nigeria. Therefore, the study recommended that policymakers should implement strategies to stabilize the naira by promoting foreign investment, reducing overreliance on oil exports, and diversifying the economy
EFFECTS OF INTEREST RATE ON PROFITABILITY OF LISTED DEPOSITE MONEY BANKS IN NIGERIA
Full text linkFluctuations in interest rates remain a critical challenge affecting the profitability of listed deposit money banks in Nigeria. This study investigates the relationship between interest rates and banks profitability, focusing on Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM) among 10 listed deposit money banks from 2013 to 2022. Employing a panel regression approach, the study analyses secondary data from annual financial reports and regulatory sources to assess how interest rate movements influence banking performance. Preliminary findings indicate that interest rate fluctuations impact profitability, but the extent and direction of these effects vary across different financial indicators. While some banks benefit from higher interest rates through improved margins, others experience increased funding costs, reduced loan disbursement, and higher default risks. The study acknowledges that the final results are yet to be fully established, emphasizing the need for a nuanced approach to interest rate management. Given the evolving financial landscape, the study highlights the importance of risk-adjusted pricing models and hedging strategies to mitigate adverse effects. Additionally, regulatory policies that stabilize interest rates could help banks maintain profitability and sustain economic growth. The study's insights contribute to ongoing discussions on optimizing financial performance in Nigeria’s banking sector
EFFECT OF CAPITAL ADEQUACY AND LIQUIDITY MANAGEMENT ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Full text linkThe financial performance of banks is crucial for economic stability, yet listed deposit money banks in Nigeria continue to face challenges in maintaining optimal capital adequacy and liquidity management. This study examines the effect of capital adequacy and liquidity management on the financial performance of listed deposit money banks in Nigeria, measured by Return on Equity (ROE). Using a correlational research design, secondary data were extracted from the financial statements of 10 listed deposit money banks on the Nigerian Exchange Group (NGX) from 2014 to 2023. A census sampling approach was employed to ensure comprehensive analysis. Data were sourced from audited financial reports, the Central Bank of Nigeria (CBN) Banking Supervision Reports, and other regulatory publications. The study employed panel data methodology and multiple regression analysis to evaluate the impact of capital adequacy and liquidity management on ROE. The findings revealed that both capital adequacy and liquidity management have a significant positive effect on financial performance, with liquidity management exhibiting a stronger influence. This suggests that banks with well-structured capital reserves and effective liquidity strategies achieve higher profitability and resilience. The study concludes that optimal capital adequacy and liquidity management are essential for sustaining financial performance and stability in the Nigerian banking sector. The study recommends among others that banks should enhance human capital development through periodic financial training for employees and clients, ensuring better financial decision-making and improved liquidity management practices
EFFECT OF INVESTORS' OVERCONFIDENCE AND MENTAL ACCOUNTING ON INVESTMENT PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA
Full text linkBehavioral finance theory documents that the actions of individual investors have demonstrated that individuals appear to respond to and perceive the same information differently, generating cognitive biases. It is against this backdrop that this study empirically examines the effect of mental accounting and investors' overconfidence on the investment performance of deposit money banks in Nigeria. The study used 960 daily observations on the population of thirteen (13) and a sample size of eight (8) deposit money banks in Nigeria that paid annual dividends from the period 2013 to 2022. The study employed a secondary source of data collection and was gathered from the monthly share market data and annual financial reports from 2013 to 2022. The study data were analyzed through descriptive statistics, correlation analysis, and the multiple regression model to test the formulated hypothesis for the study. after conducting the diagnostic tests such as the mean VIF test and Hettest, the study established that the Ordinary Least Squares (OLS) model is the study-appropriate model for the study. The findings of the study showed that mental accounting and the overconfidence of investors have a positive and significant effect on the investment performance of deposit money banks in Nigeria. Based on the results of the study, it is recommended that mental accounting and overconfidence should be considered during financial investment decision-making processes because it has been empirically established that they both, had a favorable and significant effect on investment performance
EFFECT OF SUSTAINABILITY DISCLOSURE ON FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA
Full text linkManufacturing companies in Nigeria are increasingly expected to disclose their sustainability practices, but the financial benefits of doing so are still uncertain. This study explored how different aspects of sustainability reportingeconomic, environmental, and socialrelate to the financial performance of listed manufacturing firms, focusing on return on equity. Using a quantitative research method, the study collected secondary data from the audited annual reports of 10 manufacturing firms listed on the Nigerian Stock Exchange, covering the years 2020 to 2022. These firms were chosen based on their consistent publication of financial and sustainability reports during this period. The data were analyzed using multiple regression analysis to understand the effect of each sustainability component on profitability. The results of the study showed that economic and environmental disclosures were linked to lower financial performance, while social disclosures had no significant impact. However, when all three aspects were considered together, they showed a combined positive effect on profitability. This suggests that companies may hesitate to report sustainability information unless it clearly improves performance. The study recommends that firms adopt a complete and balanced approach to sustainability reporting, as it is more likely to gain support from stakeholders and contribute to long-term business success
DETERMINANTS OF TOKEN VALUATION IN BLOCKCHAIN ECOSYSTEMS: EVIDENCE FROM DYNAMIC PANEL ANALYSIS OF CROWDFUNDING AND NETWORK EFFECTS
Full text linkThis study investigates the determinants of token valuation in blockchain ecosystems, focusing on the roles of crowdfunding support and network centrality. Using a dynamic panel dataset of token projects from 2015 to 2023, we apply the Arellano-Bond Generalized Method of Moments (GMM) estimator to control for valuation persistence and address potential endogeneity. The analysis reveals that crowdfunding backing significantly increases token valuation, while network centrality exerts a positive but nonlinear effect. Additionally, ownership concentration negatively impacts valuation, whereas project age contributes positively. Robustness checks using a nonlinear specification and instrumental variable (2SLS) approach confirm these findings. The results underscore the importance of transparent crowdfunding, diversified network ties, and decentralized ownership structures in driving sustainable token performance. Policy recommendations include enhancing disclosure standards for token offerings, incentivizing decentralized governance, and supporting long-term ecosystem development to ensure healthier digital asset markets
THE IMPACT OF MANAGERIAL ABILITY, REGULATORY ADAPTABILITY, AND INFORMATION SYSTEMS SOPHISTICATION ON FINANCIAL FIRM PERFORMANCE
Full text linkThis study examines the influence of managerial ability on firm performance within the financial sector, considering the roles of regulatory adaptability and information systems sophistication. Utilizing panel regression analysis on data from 960 European firms, the research evaluates performance through Return on Equity (ROE), Return on Assets (ROA), and Tobin’s Q. Findings reveal that managerial ability significantly improves firm performance across all metrics. Additionally, regulatory adaptability and advanced information systems positively moderate this relationship, underscoring the importance of institutional agility and digital infrastructure. The results suggest that combining managerial talent with proactive regulatory strategies and technology investments enhances competitive advantage. The study recommends that financial institutions prioritize leadership development, embrace regulatory innovation, and accelerate digital transformation to sustain superior performance
THE EFFECT OF CORRUPTION AND TERRORISM ON THE PERFORMANCE OF THE NIGERIAN EXCHANGE
Full text linkThirteen-year time-series data was used for this study from 2011 to 2023 sourced from Nigeria stock exchange, transparency international, and Economic and peace. Data was subjected to Autoregressive distributed lag regression analysis which was used to estimate the parameters of the model. The findings of the study indicate that corruption and terrorism have a negative effect on stock market performance in Nigeria. Based on the findings, the study concluded that corruption and terrorism have negative effect on the performance of the Nigerian Exchange. The study recommended that the federal government should intensify it efforts in the fight against terrorism and also increase effort in providing an enabling environment for businesses to strive and increase employment opportunities. This will reduce the number of citizens available for both financial and violent crime