FOREIGN LISTING, INSTITUTIONAL SHAREHOLDING AND DISCLOSURE PRACTICE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The repeated collapse of financial institutions has led to a perpetual lack of public confidence in the quality of information disclosed by the management of listed Deposit Money Banks (DMB’s). This study investigates empirically the factors that influence the disclosure practices of Listed Deposit Money Banks in Nigeria. The specific objectives of the study are to: Assess whether foreign listing determines the disclosure practices of listed DMB’s in Nigeria; and examine the extent to which institutional shareholding influence disclosure practices of listed DMB’s in Nigeria using the Ex-post facto research design. Secondary data was employed as the method of data collection to extract information from the annual reports of the twelve listed deposit money banks for eleven years (2007-2017). This information was statistically analyzed using the Generalized Linear Regression. The result shows that foreign listing significantly determine disclosure practice (z=5.508, p<0.01); institutional shareholding also significantly influence disclosure practice of listed Deposit Money Banks in Nigeria (z=3.233, p<0,01). The study concluded that foreign listing and institutional shareholding has significant positive influence on the disclosure practice of listed Deposit Money Banks in Nigeria. The study therefore recommends that government should mandate listed banks to dispose more shares to institutional investors than private individuals as well as put in place stringent policies and incentives to ensure that locally listed banks are also traded on international markets.