Corporate Strategic Planning and Nigerian Deposit Money Banks’ Financial Performance
Journal Title: Journal of Economics, Management and Trade - Year 2017, Vol 19, Issue 1
Abstract
The study assesses the relationship and difference between international and national corporate strategic planners’ of Nigeria deposit money banks’ financial performance, that is, capital adequacy ratio-CAR, return on asset-ROA, Non-performing loan-NPL and Loan to deposit ratio-LTDR. The population of the study involves all the 23 deposit money banks licensed and insured by Central Bank of Nigeria (CBN) and Nigeria Insurance Deposit Corporation (NDIC) respectively, data were collected in respect of their financial performance from their audited annual accounts and reports for six years (i.e. 2010-2015). T-test and Karl Pearson product moment correlation coefficient was used to analyze the data via statistical package for social science students (SPSS) version-23. The analysis reveals that there is positive significant relationship between capital adequacy ratios (CAR) and there is positive insignificant relationship between Non-Performing Loans (NPL) of international and national corporate strategic planners among Nigerian deposit money banks. While there is no significant difference between international and national deposit money banks ‘financial performance indicators (i.e. return on asset-ROA and loan to deposit ratio-LTDR); that is, corporate strategic planning of the two categories of deposit money banks has not caused any substantial or significance difference in financial performance of international and national Nigerian deposit money banks. The result or outcomes indicate that the levels of corporate strategic planning in both international and national banks are strongly correlated with financial performance. It was recommended amongst others that financial institutions should not relent in their effort to set in strategic planning as a drive to sustainable management continuous improvement in their undertakings. In addition, government should create a favourable atmosphere for the financial service sector and for corporate entities in Nigeria.
Authors and Affiliations
Hope N. Nzewi, M. Onwuka Ebele, Adeaga Caleb Jesuwunmi, Chukwurah Daniel, Anah Stanley
Keywords
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- EP ID EP319808
- DOI 10.9734/JEMT/2017/34962
- Views 123
- Downloads 0
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