THE NIGERIAN JOURNAL OF SOCIOLOGY AND ANTHROPOLOGY
ISSN: 0331-4111 e-ISSN: 2736-075X
Volume 23, No. 1, June 2025
Pages 72-89
DOI: 10.36108/NJSA/5202.32.0140
Coping Strategies Adopted by Domestic Investors in Post 2017 Stock Market Crisis and its Implications for Investment Sustainability in Lagos State, Nigeria
1 Iheanyi Valentine Ekechukwu, 2 Emeka E. Okafor, 3 Nixon Chiedozie Udeji, 1 Obianuju Chinyelu Udeobasi and 4 Leonard C. Orji
1 Department of Sociology, Nnamdi Azikiwe University, Awka, Nigeria
2 Department of Sociology, University of Ibadan, Nigeria
3 Department of Educational Foundation and Administration, Alvan Ikoku University of Education, Owerri, Nigeria
4 Psychology Department, University of Agriculture and Environmental Sciences, Umuagwo, Nigeria
Abstract
Social upheavals created as a result of the 2017 stock market crisis were so enormous as domestic investors started looking inwards on efficient ways of mitigating the effects of the crisis. Previous works on equities market led emphasis on risky assets and volatility, largely overlooking the social aspects of stock market crises. This study investigated investors’ coping mechanisms in post 2017 stock market crisis in Lagos, Nigeria, and their impact on sustainable investment outcomes. The study was guided by rationalisation theory, whereas a descriptive research design was utilized. Snowball and purposive sampling methods were employed to select three stock brokerage firms and regulatory agencies, leveraging respondents’ professional expertise in stock market activities. A total of forty in-depth interviews were conducted with clients from three firms: fourteen from Cowry Assets Management Limited, thirteen from Future view Financial Services Limited and thirteen from Greenwich Trust Limited. Six case studies were undertaken, comprising two clients from each of the three selected brokerage firms. Key informant interviews were conducted as follows: three staff from Securities and Exchange Commission, three from Nigerian Exchange Limited, and a dealing-clerk from each of the selected brokerage firms. Data were subjected to content analysis. Domestic investors adopted restructuring and diversification of assets as coping strategies; creating illiquidity in the stock market as funds were diverted to money market instruments which hindered stock market growth and investment sustainability. There is need for formulation and implementation of stable policies that will guarantee growth and investment sustainability.
Keywords: Coping strategies, domestic investors, investment sustainability