Credit risk management and share value of listed deposit money banks in Nigeria

Abstract

The paper examines the effect of credit risk management on share value of listed deposit money banks in Nigeria.
The population of the study is made up of all listed deposit money banks with international authorization which are
the sample of the study. The multivariate regression and correlation matrix have been used in analyzing the data
collected. The findings of the study reveal that nonperforming loan ratio (NPLR) has significant effect on earnings
per share (EPS). Firm size (FSIZE) has significant effect on earnings per share (EPS). Moreover, the research
recommends that nonperforming loan ratio (NPLR) of listed deposit money banks in Nigeria should be given utmost
regard by finding ways to reduce the nonperforming loans of the banks so as the ratio of nonperforming loan to
total loans would be improved. Adequate regard should also be given to collateral as well as history of the borrower
and borrower credit ratings before granting loans.