The Determinants of Value Creation in the Nigerian Banking Industry: Panel Evidence
Kolawole Olugbenga Oladele

Abstract
This paper seeks to identify the determinants of value creation in the Nigerian banking industry. The data for the study are secondary (cross-sectional and time-series) data. All the 21 universal bankslisted on the Nigerian Stock Exchange(NSE)are selected for the study. The secondary data are analysed using the Ordinary Least Squares Method. It is found that in the Nigerian banking industry,profitability anddividend policy have significant relationships with the creation of shareholder value while financial policydoes not.It shows thatgiving the pursuit of the profitability objective a greater attention than other objectives may not necessarily be counter-productive. The study recommends, among other things, thatindustry regulators and practitioners in the Nigerian banking industry seeking to create value for shareholders should focus on the improvement of profitability and the development and adoption of sound dividend policiesas better determinants of shareholder value.

Full TexT: PDF