Assessing the Effect of Non-Current Assets on the Shareholders' Fund of Selected Five Deposit Money Banks (DMBs) in Nigeria

Abstract

This study examined the effect of non-current assets on Shareholders’ fund of Deposit Money Banks (DMBs) in Nigeria. Particular emphasis was laid on ascertaining the effect of investment in land and building, as well as ICT infrastructure on shareholder’s value fund of listed DMBs in Nigeria. Adopting ex post facto research design, the study used population of all listed deposit money banks of which five (Access Bank Plc, First Bank of Nigeria Plc, Guarantee Trust Bank Plc, United Bank for Africa Plc, and Zenith Bank Plc) was sampled. The result of multiple regression analysis carried out with the aid of E-View 13 revealed that, while land and buildings had a statistically significant negative effect on shareholders’ value in the DMBs listed on the Nigerian Stock Exchange (β = -0.535360; p < 0.05), ICT infrastructure has no statistically significant effect on shareholders’ value (β = 0.059172; p > 0.05). It was concluded that, investments in ICT infrastructure do not directly translate to improved shareholder wealth, possibly due to factors such as maintenance costs, depreciation, or inefficiencies in asset utilization. The study therefore, recommended among other things that DMBs should limit excessive investments in land and buildings and explore cost-effective alternatives such as leasing or optimizing existing infrastructure to avoid negative impacts on shareholder value.