IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 11 NO. 5 2024
DOI: 10.56201/ijefm.v10.no5.2025.pg79.92

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Investor Behaviour toward Subsidiary and Agricultural Financing: A Study of Financial Sustainability Practices in Nigerian Banks

Okwuego Sopuruchukwu Peace, Onukelobi Peace Chinwe, Ifeme Sylvester Chinweike, Inweregbu Onyekachi Anthony, and Agbapuruonu Festus Ugonna

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Abstract

This study investigates the impact of sustainability practices, specifically investment in subsidiaries and agricultural financing, on investor behavior in Nigerian deposit money banks. Using panel data from 13 listed banks on the Nigerian Exchange Group covering 2013 to 2024, fixed-effects regression analysis was employed to assess the relationship between these variables and market capitalization. The results reveal that neither investment in subsidiaries nor agricultural financing has a statistically significant effect on market capitalization, indicating limited influence on investor behavior within the sampled banks. These findings suggest that investors may not perceive these sustainability practices as value-enhancing in the Nigerian banking sector. The study contributes to the understanding of how specific sustainability initiatives impact investor decisions in emerging markets and highlights areas for banks to reconsider in their sustainability strategies to attract investor interest.

keywords:

Sustainability Practices, Investor Behavior, Investment in Subsidiaries, and Agricultural Financing.

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