Impact of Share Capitalization on Bank Profitability in Nigeria

International Journal of Nigerian Studies and Development, Vol. 14, pp. 5-20, 2008

36 Pages Posted: 13 May 2009

Date Written: September 11, 2008

Abstract

This paper is an empirical analysis of the impact of share capitalization on bank profitability in Nigeria. Analyzing data captured from 98 banks in 479 observations over the 1989-2004 period, results of the empirical estimations suggest that it was only during the 1989-1991 estimation period that share capital amount and status had significant effect on bank profitability in Nigeria. Therefore, upward regulations of the minimum quantum of bank share capital in Nigeria in 1997, 2000, 2001, and 2004, geared towards minimizing distress in the Nigerian banking industry, were inappropriate strategies.

Keywords: Bank, Capital, Regulation, Profitability, Distress

JEL Classification: G21

Suggested Citation

Aburime, Toni, Impact of Share Capitalization on Bank Profitability in Nigeria (September 11, 2008). International Journal of Nigerian Studies and Development, Vol. 14, pp. 5-20, 2008, Available at SSRN: https://ssrn.com/abstract=1402625

Toni Aburime (Contact Author)

Deakin University ( email )

221 Burwood Highway
Burwood, Victoria 3125
Australia
+61 4 20635563 (Phone)

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