Internationalization and Market Value-Added of the Banking Industry in Nigeria

Abstract

Bank shareholders now regard market value-added as a wealth gauge that reflects the value that banks have accumulated over time. This keeps the management of banks apprehensively unsettled having exhausted the domestic market, leading to consideration of the internationalization of banking operations. However, the effectiveness of internationalization to increase market values are full of uncertainties. As a result, this study looked at the impact of internationalization on the banking industry’s market value in Nigeria. The study used secondary data gathered from the financial statements of eight banks given internationalization license by the Central Bank of Nigeria during a 15-year period from 2007 to 2021. The study used random-effect generalized least square regression, and the results showed that internationalization had a convincing influence on the market value-added of the Nigerian banking business. The research proposed that bank management consider optimizing the internationalization of banking choices in order to develop a broader variety of banking services outside boundaries and so boost the market value-added of the Nigerian banking industry