The Effect Of Delisting On The Performance Of The Nigerian Stock Exchange

Filed in Articles by on July 25, 2022

The Effect Of Delisting On The Performance Of The Nigerian Stock Exchange.


This study evaluated the effects of delisting on the performance of the Nigerian Stock Exchange (NSE). The study determined the effect of delisting on market capitalization, All Share Index and Stock Traded. Three research questions were raised and three hypothesis where formulated to guide the study.

Samples of delisted firms in Nigeria between 1998 and 2016 were employed for the study it was entirely focused on Nigerian Stock Exchange.

The study adopted a longitudinal research design. The study uses secondary source of data collection and the instrument used for the collection of the data was through documentation.

The secondary data was collected using a data capture sheet, extracted from the annual reports of the Nigerian Stock Exchange, for the period of 19 years ranging from 1998-2016. The data collected was analyzed using multiple regressions done using SPSS 20 software.

All hypotheses were tested at .05 level of significance. Results from the data analyzed revealed that there was no significant effect of delisting on market capitalization, all share index and stock traded.


The Nigerian stock exchange is a private nonprofit making organization limited by guarantee. It was incorporated via the inspiration and support of businessmen and the federal government through the CBN but owned by about 300 members.

The membership includes financial institutions, stock brokers and individual Nigerians of high integrity who have contributed to the development of the stock market and the Nigerian economy.

The exchange is a self regulatory organization (SRO) making and enforcing rules for its members. Today, the NSE has 10 functional trading floor on different parts of the country and companies listed on the exchange cuts across the economic sectors of Nigeria and includes local affiliates and subsidiaries of multinationals(Okafor,2012).


Arvind ,S.P,and Guilles Seguin (2005) Behavioural finance issues in listing and delisting in the French wine industry; Lesson from the case of grands vin boisset .

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