Coronavirus Information Spread and Banks’ Stock Returns in Nigeria: An Event Study Approach
Journal Title: Journal of Economics, Finance and Management Studies - Year 2021, Vol 4, Issue 01
Abstract
This research study empirically assessed the corona virus information spread and banks’ stock returns in Nigeria. The study adopted event study approach which suites the research because of its descriptive nature. The daily data of closing share prices of the selected banks listed in Nigerian Stock Exchange (NSE) was collected from NSE website for a period of 146 days. Using 124 days estimation window, the result shows that the Intercept (C) and Market Returns (MKTR) has a coefficient of -0.00125 and -0.00848 respectively. Analyzing the stock of commercial banks in the Nigerian stock exchange during the first 100 days of COVID19 contagious infectious disease outbreak in Nigeria, we find that the pandemic disease interacts positively with stock returns which is against the expectation. Specifically, banking firms’ abnormal returns on the corona virus information spread at 100th day are positive but insignificant. We therefore conclude that COVID-19 information into the Nigerian banking sector triggers positive investment in the sector with desirable abnormal returns. We therefore call the relevant authorities to adequately consider policy responses implemented in the sector, and to further analyze information about the COVID-19.
Authors and Affiliations
Ikwuagwu, Henry Chinedu , Efanga, Udeme Okon , Kingsley Nwagu , Ihemeje J. C.
Keywords
Related Articles
- EP ID EP691409
- DOI 10.47191/jefms/v4-i1-01
- Views 214
- Downloads 0
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