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Stock Market Consequences of the Suspension of the Central Bank of Nigeria’s Governor

The sudden announcement of the suspension of the Governor of the Central Bank of Nigeria (CBN) on the 20th February 2014 created mixed reactions among analysts and market participants in Nigeria and beyond. The objective of this study is to empirically establish the reaction of listed firms’ stock prices to the announcement of the suspension of the Governor of the CBN. Using the standard event study methodology on a sample of 104 out of the 122 listed firms that traded on the floor of the NSE on the fateful day, the study sought to establish the significance of abnormal return and cumulative a…

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