Department of Banking and Finance, Faculty of Business Administration, University of Nigeria, Enugu Campus, Nigeria
Aburime, U.T., Department of Banking and Finance, Faculty of Business Administration, University of Nigeria, Enugu Campus, Nigeria; Uche, C.U., Department of Banking and Finance, Faculty of Business Administration, University of Nigeria, Enugu Campus, Nigeria
This paper is an empirical analysis of the impact of share capitalization on bank profitability in Nigeria. Analyzing data captured from 98 banks in 479 observations over the 1989-2004 period, results of the empirical estimations suggest that it was only during the 1989-1991 estimation period that share capital amount and status had significant effect on bank profitability in Nigeria. Therefore, upward regulations of the minimum quantum of bank share capital in Nigeria in 1997, 2000, 2001, and 2004, geared towards minimizing distress in the Nigerian banking industry, were inappropriate strategies. © EuroJournals Publishing, Inc. 2008.