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
Related Articles
- EP ID EP319808
- DOI 10.9734/JEMT/2017/34962
- Views 194
- Downloads 0
Impact of Off-farm Sector Involvement on Welfare of Rural Households in Nigeria: A Propensity Score Matching Approach
This study investigated the impact of off-farm employment on the welfare of households in rural Nigeria employing household data obtained from the RIGA database. A sample of 14,512 rural households was used for the study...
Effect of Presidential Cassava Transformation Initiative on the Efficiency of Micro-scale Cassava Processing Enterprises in Southwest Nigeria
This study appraised the effect of 2003 Presidential Cassava Transformation Initiative (PCTI) on the efficiency of Micro-Scale Cassava Processing Enterprises in Southwest Nigeria. The study was carried out between April...
Innovation Activities in Turkey: Comparative Analysis of 2010-2012 and 2012-2014 Periods
The dynamics of globalization have lead to many changes in the environments in which organizations carry out their activities. The modern world has become more interested in competition, speed, risk, productivity and dyn...
An Economic Analysis of Volume and Price Behaviour of Vegetables in the Republic of Trinidad and Tobago
Aims: This study was aimed to examine the behaviour and pattern of fluctuations in market volume and prices of 21 major vegetables consumed in Trinidad and Tobago. Study Design: The study used monthly data for a period...
Fair Trade Minimum Price: A Comparative Analysis for the Arabica Coffee Market
Aims: This paper analyses the validity of the fixed Minimum Price approach used by Fair Trade Movement (FTM). It focuses on coffee, from the Brazilian state of Minas Gerais, where the majority of FTM Arabica coffee is pr...