POST DEMUTUALIZATION AND FINANCIAL PERFORMANCE OF NIGERIAN EXCHANGE LIMITED (NGX)
Babagana Abba, PhD, Yahaya Yusuf, PhD, Hadiza Ahmed Suleiman, PhD and Umar Salim Ibrahim
Volume 4 Issue 2
Abstract
The study focuses on evaluating the financial performance of the Nigerian Exchange Limited (NGX) following its demutualization. The study utilizes secondary data obtained from the published financial statements of the Nigeria Exchange Limited -NGX in the first and second years after demutualization. The study was based on a longitudinal research design, and key financial performance indicator ratios related to liquidity, leverage, efficiency, profitability, and market value are computed and analyzed for both the first year (2021) and the second year (2022). Descriptive analysis and independent sample t-tests are conducted to test the hypotheses. The study concluded that there is no significant difference between the mean values of the NGX financial performance in the first year (2021) and the second year (2022) post-demutualization. This conclusion is supported by the insignificant mean difference of 0.68700 between the financial performances of the two periods and a p-value of 0.616 at a significance level (α) of 0.05 revealed by the study. Based on this conclusion, it is recommended that stakeholders and potential investors interpret the financial ratios alongside other critical factors such as future industry opportunities and the governance structure of the Nigerian Exchange Limited. Taking these additional considerations into account will lead to a more comprehensive understanding of the overall financial prospects of the company. Additionally, the study suggests that the government should closely monitor the performance of the NGX and implement effective policies that stimulate its financial performance, considering its impact on the GDP growth of the Nigerian economy. Keywords: Demutualization, Nigerian Exchange Limited, NGX Group,
Download Paper