Effect of the Nigerian Stock Market Meltdown on the Profit After Tax of Listed Deposit Money Banks (DMBs) in Nigeria: An Empirical Analysis

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Mairafi_2011b.pdf (159.98 KB)

Date

2011-09-12

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Department of Banking & Finance, Nasarawa State University, Keffi

Abstract

The gains of the Nigerian banking sector capitalization that climaxed in 2005 can no longer be guaranteed because the Nigerian stock market meltdown that started towards the end of the first quarter of 2008 has severely affected the capitalization of the banking sector through the erosion of their market value. The study ascertained the impact of the stock market meltdown on the profitability of listed DMBs in Nigeria. The study relied heavily on secondary data collected through the NSE factbook and the annual reports of sample DMBs. The simple regression analysis revealed that the profit after tax of DMBs is not significantly influenced by the Nigerian stock market meltdown. Consequently, it was recommended that banking regulation in Nigeria should be operated in a global and liberalized financial system.

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Keywords

stock market meltdown, profit after tax, DMBs

Citation

Adamu, A. (2009). The effect of Global Financial Crisis in Nigerian economy. Retrieved 3 February, 2009, from SSRN Electronic Database Anari, A. & Kolari, J.W. (1999). Nonmonetary effects of the financial crisis in the Great Depression. Journal of Economics and Business, 51, 215-236 Avgouleas, E. (2008). Financial regulation, behavioural finance, and the Global Financial Crisis: In search of a new regulatory model. American Economic Review, 88, 724-748 Battilana, J. (2006). Agency and institutions: The enabling role of individuals’ social position. Organisation, 13,(5), 653-676 Brint, S., & Karabel, J. (1991). Institutional origins and transformations: The case of American community colleges. In W. Powell & P. DiMaggio (Eds.), The New Institutionalism in Organisational Analysis (pp. 337-360). Chicago: University of Chicago Press

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https://keffi.nsuk.edu.ng/handle/20.500.14448/937

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