Chief Executive Officer Media Behavior And Stock Returns In The Nigerian Financial Services Industry

Abstract

This study investigates the relationship between CEO media behaviour and stock returns within the context of the Nigerian financial services industry. With the increasing influence of media in shaping public perception and market sentiment, understanding the impact of CEO media engagement on stock performance is of significant interest to both scholars and practitioners. The objectives of this study are to investigate the interaction between media information and stock movement, the influence of media on CEOs' behaviour, how CEOs' behaviour interface with media to influence stock movement, as well as whether CEOs' media behaviour in financial services firms differ significantly from one another. Using the upper echelon theory as the theoretical anchorage, the study employs various descriptive and correlational survey designs to examine CEO media conduct and how it relates to stock returns.  Data for the analysis was generated using a structured questionnaire administered to CEOs of financial services firms. Pearson Product Moment Correlation (PPMC), linear regression, and Analysis of Variance (ANOVA) were used for the computation. Findings demonstrate that stock movement and media coverage are statistically related. Again, the finding also indicates that CEO action is influenced by media reports on stock movement. Furthermore, the media influences CEO behaviour and stock movement in the financial services industry. It is recommended that CEOs explore the media to convey information about themselves and their organisations to the market to impound stock prices.