Growth Indices and Value of Ordinary Shares of Deposit Money Banks in Nigeria, 2013 to 2024

Chinedu Callistus Onyia, Agu Bertram Onyebuchi and Ogbonna Obinna Bright
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Chinedu Callistus Onyia: Department of Banking and Finance, Enugu State University of Science and Technology
Agu Bertram Onyebuchi: Department of Banking and Finance, Enugu State University of Science and Technology
Ogbonna Obinna Bright: Department of Banking and Finance, Enugu State University of Science and Technology

East African Finance Journal, 2026, vol. 5, issue 1

Abstract: The study examined the affinity between growth indices and the value of ordinary shares of deposit money banks in Nigeria. The specific objective of the study is to ascertain the alliance between total deposit growth, total asset growth, liquidity, profit growth share, and ordinary shares of deposit money banks in Nigeria. The study adopted an ex-post-facto research design, covering the period between 2013 and 2024. Secondary data were extracted from the annual report and accounts of the sampled deposit money banks listed on the Nigeria Exchange Group (NXG). The study purposively sampled 8 out of the 24 deposit money banks operating in Nigeria. Spearman rank order covariance technique was used for the test of hypotheses. The result revealed that total deposit growth has a negative and non-critical alliance with share price of deposit money banks in Nigeria with a coefficient value of -0.003849 and the p-value (0.3084 > 0.05) critical level. Total assets growth has a negative and noncritical alliance with the share price of deposit money banks in Nigeria with a correlation coefficient value of -0.001376 and the probability value (0.6580 > 0.05) critical level. Liquidity has a positive and critical alliance with the share price of deposit money banks in Nigeria with a correlation coefficient of 7.235332 and a p-value (0.00011 0.05) critical level. The study recommended, among others, that banks should focus on holistic financial management, including risk assessment, liquidity maintenance, and capital allocation. By demonstrating a balanced approach to growth and maintaining transparent communication about asset expansion strategies, banks can foster investor trust, positive sentiment, and potential upward movement in share prices.

Keywords: Deposit Growth; Liquidity and Profit growth; Exchange group; Spearman Rank order; Ordinary share (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:eafjke:2026-06

DOI: 10.59413/eafj/v5.i1.6

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