FIRM ATTRIBUTES AND SHAREHOLDER’S WEALTH OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study investigated the effect of firm attributes on shareholders’ wealth of listed deposit money banks in Nigeria. This paper examined the effect of firm attributes on the shareholders’ wealth of listed deposit money banks in Nigeria. The study population consists of Fifteen (15) listed deposit money banks in Nigeria as at 31st December 2022, filtered to 13 Listed Deposit Money Banks whose data were extracted and studied between 2010 to 2022. Multiple regression techniques using robust ordinary least square (OLS) due to the pooled nature of the data used, and estimation was employed in analyzing the data obtained from the audited annual reports and accounts of sampled firms. The study found that all the independent variables, namely, capital adequacy ratio, credit risk, return on equity, and cost efficiency, have a positive significant effect on the share prices of listed deposit money banks in Nigeria, In view of the findings, this study recommend that management and other stakeholders in Nigerian Banking should ensure that the optimum level of capital adequacy is maintained, maintain an optimal level of credit risk while avoiding excessive risk-taking, maximize the bank’s profitability and cost efficiency, to enable deposit money bank continue to discharge their function effectively to the society while protecting the interest of, and maximizing the wealth of the shareholders at the same time. I certified. This paper is my work and the combination of variables used is not copied from any source.

Keywords

• Capital Adequacy
• Cost Efficiency
• Credit Risk
• Profitability
• Shareholders wealth