IDEAS home Printed from https://ideas.repec.org/a/rss/jnljms/v7i6p2.html
   My bibliography  Save this article

Corporate Crime Announcement and Share Prices of Deposit Money Banks in Nigeria

Author

Listed:
  • Yusuf Musa Muhammad
  • Kabiru Umar

Abstract

This study analyses the impact of Crime announcement in Central Bank of Nigeria on the share prices of Deposit Money Banks (DMBs) in Nigeria. It tries to determine whether or not corporate crime announcement for a sample of 20 DMBS resulted in an abnormal return around the announcement day in the Nigerian Stock Exchange. Using event study, the abnormal returns for the event window days (-5, +5) are calculated over estimation parameter (-120, -6 days), employing the Market Model. For test of statistical significance, t-statistics was employed. The findings of the study indicate that, there is positive, but insignificant abnormal return on share prices of DMBs before, on, and after the day of announcement of crime in Central Bank at 5% level of significance. Thus, the study concludes that, there is no significant abnormal return before, on the date and after crime announcement in Central Bank of Nigeria for share prices of DMBs in Nigeria. Therefore, the study recommends that the Apex Bank and other regulatory bodies should be more proactive in devising mechanisms towards eliminating or deterring criminal activities among employees.

Suggested Citation

  • Yusuf Musa Muhammad & Kabiru Umar, 2016. "Corporate Crime Announcement and Share Prices of Deposit Money Banks in Nigeria," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 7(6), pages 296-301.
    • Handle: RePEc:rss:jnljms:v7i6p2
    as

    Download full text from publisher

    File URL: http://rassweb.org/admin/pages/ResearchPapers/Paper%202_1497549166.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Raza, Syed Ali & Shahbaz, Muhammad & Nguyen, Duc Khuong, 2015. "Energy conservation policies, growth and trade performance: Evidence of feedback hypothesis in Pakistan," Energy Policy, Elsevier, vol. 80(C), pages 1-10.
    2. Syed Ali Raza, 2015. "Foreign direct investment, workers’ remittances and private saving in Pakistan: an ARDL bound testing approach," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 16(6), pages 1216-1234, December.
    3. Pyemo N. Afego, 2013. "Stock Price Response to Earnings Announcements: Evidence From the Nigerian Stock Market," Journal of African Business, Taylor & Francis Journals, vol. 14(3), pages 141-149, December.
    4. Michael R King, 2009. "Time to buy or just buying time? The market reaction to bank rescue packages," BIS Working Papers 288, Bank for International Settlements.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Odeyemi Gbenga A., 2015. "Understanding the Dynamics between Income and Health: Evidence Form African’s Richest and Poorest Countries," Journal of Public Policy & Governance, Research Academy of Social Sciences, vol. 2(2), pages 56-67.
    2. Arshian Sharif, Syed Ali Raza, 2016. "Dynamic Relationship between Urbanization, Energy Consumption and Environmental Degradation in Pakistan: Evidence from Structure Break Testing," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(1), pages 01-21, March.
    3. repec:gei:jnlfer:v:1:y:2016:i:1:p: is not listed on IDEAS
    4. Syed Ali Raza & Muhammad Shahbaz & Sudharshan Reddy Paramati, 2017. "Dynamics of Military Expenditure and Income Inequality in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 1035-1055, April.
    5. Furrukh Bashir, Farzana Yousaf, Huda Aslam, 2016. "Determinants of Inflation in Pakistan: Demand and Supply Side Analysis," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 1(1), pages 1-15, March.
    6. Raza, Syed Ali & Shah, Nida, 2018. "Impact of Financial Development, Economic Growth and Energy Consumption On Environmental Degradation: Evidence from Pakistan," MPRA Paper 87095, University Library of Munich, Germany.
    7. Furrukh Bashir, Ismat Nasim, Ammar Ismail, 2016. "Electricity Generation and Its Impact on Real GDP and Real Exports of Pakistan: A Co-integration Analysis," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(1), pages 52-67, March.
    8. Henry Ikechukwu Onwere, 2015. "Determinants of Capital Adequacy in Deposit Money Banks: Evidence from Nigeria," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 4(6), pages 337-346.
    9. Hien Nguyen Thi Kim, 2016. "Navigating Cyclicality of Fiscal Policy in Vietnam : An Empirical Investigation," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(2), pages 159-173, October.
    10. Al-Abdul Razag Bashier, 2015. "Economic Growth and Financial Development in Jordan: An ARDL Bounds Testing Approach," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 4(5), pages 270-284.
    11. Syed Ali Raza & Mohd Zaini Abd Karim, 2018. "Influence of Systemic Banking Crises and Currency Crises on the FDI-Growth Nexus: Evidence from China," Global Business Review, International Management Institute, vol. 19(3), pages 572-589, June.
    12. Ebele P. Ifionu & Reginald C. Ibe, 2015. "Financial Dualism, the Informal Sector and Economic Growth: An Econometric Investigation of the Nigerian Evidence," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 4(7), pages 467-478.
    13. Ibrahim Mohammed & Chioma Nwafor, 2014. "Stock Market Consequences of the Suspension of the Central Bank of Nigeria’s Governor," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 12(4 (Winter), pages 371-394.
    14. Klomp, Jeroen, 2013. "Government interventions and default risk: Does one size fit all?," Journal of Financial Stability, Elsevier, vol. 9(4), pages 641-653.
    15. Syed Tehseen Jawaid & Syed Ali Raza & Khalid Mustafa & Mohd Zaini Abd Karim, 2016. "Does Inward Foreign Direct Investment Lead Export Performance in Pakistan?," Global Business Review, International Management Institute, vol. 17(6), pages 1296-1313, December.
    16. Mink, Mark & de Haan, Jakob, 2013. "Contagion during the Greek sovereign debt crisis," Journal of International Money and Finance, Elsevier, vol. 34(C), pages 102-113.
    17. Viral Acharya & Itamar Drechsler & Philipp Schnabl, 2014. "A Pyrrhic Victory? Bank Bailouts and Sovereign Credit Risk," Journal of Finance, American Finance Association, vol. 69(6), pages 2689-2739, December.
    18. Brei, Michael & Gambacorta, Leonardo & von Peter, Goetz, 2013. "Rescue packages and bank lending," Journal of Banking & Finance, Elsevier, vol. 37(2), pages 490-505.
    19. Alex Dontoh & Fayez A. Elayan & Joshua Ronen & Tavy Ronen, 2021. "Unfair “Fair Value” in Illiquid Markets: Information Spillover Effects in Times of Crisis," Management Science, INFORMS, vol. 67(8), pages 5163-5193, August.
    20. Michael Brei & Blaise Gadanecz, 2012. "Public recapitalisations and bank risk: evidence from loan spreads and leverage," BIS Working Papers 383, Bank for International Settlements.
    21. Liebmann, Michael & Orlov, Alexei G. & Neumann, Dirk, 2016. "The tone of financial news and the perceptions of stock and CDS traders," International Review of Financial Analysis, Elsevier, vol. 46(C), pages 159-175.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rss:jnljms:v7i6p2. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Danish Khalil (email available below). General contact details of provider: http://www.rassweb.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.