DOES NON-CURRENT ASSETS INTENSITY INFLUENCE STOCK PRICES OF NIGERIAN BANKS?
Author(s): Nangih, E; Owa, F
Page: 70 - 83
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Publisher: The Creek Journals
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Keywords: Non-Current Assets Intensity, Property Plant & Equipment, Intangible Assets, Long Term Investments, Market Price per Share,
Abstract:
The study investigated the effect of non-current assets intensity on stock prices of listed money deposit banks in Nigeria. The study employed the ex post facto research design and was anchored on the signaling theory. It proxied noncurrent assets intensity (the independent variable) using property plant and equipment, intangible assets and long term investments. Stock price (the dependent variable) was measured market price per share. The study used a sample of 10 listed banks in Nigeria, which were purposively selected. The data collected and used for the study was for a period of 11 years from 2013 to 2023. The panel regression technique was employed in testing the hypotheses formulated. Descriptive and correlational analysis were also carried out. The major findings reveal that all the independent variables have negative effects on the dependent variables but only PPER is significant. The results reveal that intangible assets intensity and long term investments have negative effects on the dependent variable but not significant. The findings of this study lead to the following conclusions: increasing levels of investments in plant and machinery will not stimulate stock prices of banks. Based on that the following policy recommendations were made: (i) banks should not increase property, plant and equipment intensity since it will not increase their market price per share. (ii) Finally, it was also recommended that intangible assets intensity and long term investments should not be increased as such will not stimulate stock prices.
Citations:
Nangih, E; Owa, F "DOES NON-CURRENT ASSETS INTENSITY INFLUENCE STOCK PRICES OF NIGERIAN BANKS?" Volume 1 Issue 1 Oct, 2025