Dispersed Equity Holding and Financial Performance of Banks in Nigeria
AbstractThe Nigerian banking system went through another type of reform since the completion of banking consolidation exercise in 2005, this came after a stress test which was done to ascertain the level of compliance with corporate governance code and soundness of banks in the country. Consequently, the sector witnessed another merger and acquisition, nationalization of some banks considered unhealthy and the granting of clean bill to some banks considered healthy. The directives on dispersed equity holding is an example, these healthy banks complied with. Thus, the granting of the clean bill is influenced by evidence of compliance with the code of corporate governance to some considerable extent by these banks. This only implies that, the effective operational performance of their function is tied to adherence to the code of good corporate governance practice. However, the problem is unlike operational performance, financial performance is not completely tied to adherence to the code but several other internal and external business strategies. This study has, as a major objective to study the impact of dispersed equity holding on the performance of banks considered healthy by the central bank of Nigeria. Data covering the period 2006-2010 were extracted from their financial statements. The study employed the technique of t-test with independent samples to reveal whether there was any impact of dispersed equity holding on the performance of these banks. Findings revealed an impact that is significant. Compliance with the corporate governance code as well as intensifying strategies that promotes financial performance should be further upheld.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences in its journal International Journal of Academic Research in Accounting, Finance and Management Sciences.
Volume (Year): 3 (2013)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://hrmars.com/index.php/pages/detail/Accounting-Finance-Journal
Dispersed equity holding; post consolidation; financial performance;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Athanasoglou, Panayiotis & Brissimis, Sophocles & Delis, Matthaios, 2005.
"Bank-specific, industry-specific and macroeconomic determinants of bank profitability,"
32026, University Library of Munich, Germany.
- Athanasoglou, Panayiotis P. & Brissimis, Sophocles N. & Delis, Matthaios D., 2008. "Bank-specific, industry-specific and macroeconomic determinants of bank profitability," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(2), pages 121-136, April.
- Panayiotis P. Athanasoglou & Sophocles N. Brissimis & Matthaios D. Delis, 2005. "Bank-Specific, Industry-Specific and Macroeconomic Determinants of Bank Profitability," Working Papers 25, Bank of Greece.
- Oliver Hart & John Moore, 1988.
"Property Rights and the Nature of the Firm,"
495, Massachusetts Institute of Technology (MIT), Department of Economics.
- Demsetz, Harold & Lehn, Kenneth, 1985. "The Structure of Corporate Ownership: Causes and Consequences," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1155-77, December.
- Dewatripont, M & Maskin, E, 1995.
"Credit and Efficiency in Centralized and Decentralized Economies,"
Review of Economic Studies,
Wiley Blackwell, vol. 62(4), pages 541-55, October.
- Mathias Dewatripont & Eric Maskin, 2004. "Credit and efficiency in centralized and decentralized economies," ULB Institutional Repository 2013/9605, ULB -- Universite Libre de Bruxelles.
- Mathias Dewatripont & Eric Maskin, 1995. "Credit and efficiency in centralized and decentralized economies," ULB Institutional Repository 2013/9603, ULB -- Universite Libre de Bruxelles.
- Holmstrom, Bengt, 1999.
"Managerial Incentive Problems: A Dynamic Perspective,"
Review of Economic Studies,
Wiley Blackwell, vol. 66(1), pages 169-82, January.
- Bengt Holmstrom, 1999. "Managerial Incentive Problems: A Dynamic Perspective," NBER Working Papers 6875, National Bureau of Economic Research, Inc.
- Short, Helen, 1994. " Ownership, Control, Financial Structure and the Performance of Firms," Journal of Economic Surveys, Wiley Blackwell, vol. 8(3), pages 203-49, September.
- Chong, Beng Soon, 1991. "The Effects of Interstate Banking on Commercial Banks' Risk and Profitability," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 78-84, February.
- Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross, 2003.
"Bank concentration and crises,"
Policy Research Working Paper Series
3041, The World Bank.
- Roberts, John & Van den Steen, Eric, 2000. "Shareholder Interests, Human Capital Investment and Corporate Governance," Research Papers 1631, Stanford University, Graduate School of Business.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hassan Danial Aslam).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.