Ibadan Journal of the Social Sciences
Volume 21, No. 1, 2023
DOI: 10.36108/ijss/3202.12.0150
Domestic Investors’ Socio-economic Experiences and the 2017 Stock Market Crisis in Lagos State, Nigeria
Iheanyi Valentine Ekechukwu1, Ifeanyi P. Onyeonoru2, Emeka E. Okafor2, Ezebunwa E. Nwokocha2 and Chinedu Ernest Dinne2
1Department of Sociology, Nnamdi Azikiwe University, Awka, Nigeria
2Department of Sociology, University of Ibadan, Nigeria
Abstract
Globally, stock market crisis is a recurrent phenomenon to which Nigeria is not immune. The 2017 stock market crisis in Nigeria continues to affect the domestic investment profile. Previous studies on stock markets have focused largely on economic growth and foreign investors, neglecting the social dimensions of stock market crises. Therefore, this study examined domestic investors’ socio-economic experiences during the 2017 stock market crisis in Lagos, Nigeria. The Planned Behaviour Theory provided the framework, while a descriptive design was employed. Purposive and snowball sampling techniques were utilised to select three stockbroking firms and regulatory agencies based on their professional knowledge of stock market operations. Forty in-depth interviews were conducted, fourteen with clients of Cowry Assets Management Limited, thirteen with clients of Futureview Financial Services Limited, and thirteen with clients of Greenwich Trust Limited. Six case studies were conducted, with two clients from each of the three selected stockbroking firms. Additionally, nine key informant interviews were conducted: three with staff from Nigerian Exchange Limited, three staff from Securities and Exchange Commission, and one stockbroker from each of the three selected stockbroking firms. Data were content-analysed. During the 2017 stock market crisis, domestic investors had negative socio-economic experiences, including loss of lives and friendships, and disruption of marriages leading to separation, divorce and social order upheavals. The crisis caused socio-economic disruptions that affected lifestyles and well-being among domestic investors. Transparency in the market is necessary to restore investors’ confidence.
Keywords: Domestic investors, experiences, stock market crisis