ELECTRONIC PAYMENT CHANNELS AND BANKING SECTOR SHAREHOLDERS’ VALUE MAXIMIZATION IN NIGERIA: A VECTOR ERROR CORRECTION APPROACH

Effect of e-payment channels such as automated teller machine, point of sales and web-based transaction on shareholders’ value measured by the earnings per share of the Nigerian banking sector had been assessed in this study. The study employed the vector error correction model technique to estimate quarterly data collected on the variables for the period 2010 to 2018. It was discovered that automated teller machine was negative in the first three lags but positive at the fourth lagged period. Also, the initial usage of point of sales in the first year reduced the earnings per share of banks, at the second and third years, it had enhancement effects on earnings per share but decreased the earnings per share of banks in the fourth year. Furthermore, web-based transaction had a significant positive effect on earnings per share of banks in Nigeria in the first and second lagged periods but became negative in subsequent lagged periods. On the bases of these findings, it was recommended that adequate backup infrastructure should be provided by banks to complement the inadequate public infrastructure since internet connectivity is a criterion for improved e-banking services for banks to improve on the initial gains from utilizing these channels.