Consequences of the Treasury Single Account Policy on the Wealth of Nigerian Commercial Banks' Shareholders. Issue 9 (15th July 2018)

• Record Type: Journal Article
• Authors: Moses, Olayinka; Ehalaiye, Dimu; Maimako, Sebastian; Fasua, Kayode
• Is Part Of: Emerging markets finance & trade. Volume 54:Issue 9(2018)
• Page Start: 2078
• Page End: 2092
• Publication Date: 2018-07-15
• Subjects: event study -- market reaction -- Nigeria -- Treasury Single Account (TSA) -- valuation; Balkan Peninsula -- Commerce -- Periodicals; Balkan Peninsula -- Foreign economic relations -- Periodicals; Europe, Central -- Commerce -- Periodicals; Europe, Central -- Foreign economic relations -- Periodicals; Europe, Eastern -- Commerce -- Periodicals; Europe, Eastern -- Foreign economic relations -- Periodicals; Turkey -- Commerce -- Periodicals; Turkey -- Foreign economic relations -- Periodicals; Asia -- Commerce -- Periodicals; Asia -- Foreign economic relations -- Periodicals; Eurasia -- Commerce -- Periodicals; Eurasia -- Foreign economic relations -- Periodicals; 382.05
• DOI: 10.1080/1540496X.2017.1356715
• Languages: English
• ISSNs: 1540-496X

Abstract

ABSTRACT: We examine the impact of the Nigerian government's Treasury Single Account (TSA) policy to withdraw the funds of Ministries, Departments and Agencies from commercial banks. Following the economic policy uncertainty theory, we use an event study methodology to measure the impact of the TSA policy on the shareholders' wealth. Our results reveal that the announcements and subsequent final implementation of the TSA policy caused negative abnormal returns and losses on the wealth of the commercial banks' shareholders. This article contributes to the literature on stock market reaction to policy announcements and the unintended consequences government policy can have in an emerging economy.