Effect of Liquidity and Profitability on Credit Risk Management of Listed Deposit Money Banks in Nigeria
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 07
Abstract
This study examined the moderating effect of liquidity on profitability and credit risk management of listed deposit money banks in Nigeria. Ex-post facto research design was adopted to define the structure and strategy of the study, while the target population was all the listed deposit money banks in Nigeria as at 31st December, 2023 which were 14 in number. Out of the 14 banks 12 were purposively chosen based on their complete annual reports and accounts over the period of the study (2019-2023). Panel regression analysis was used to analyze the collected data, and the results shows a positive but insignificant direct effect of returns on assets on credit risk management of the banks. However, returns on equity revealed a positive and significant effect on credit risk management of the banks. While, returns on capital employed was found to have negative but significant effect on credit risk management of the banks. Furthermore, liquidity management shows positive and significant moderating effect on returns on assets, returns on equity, returns on capital employed and credit risk management of the banks. Therefore, the study concluded that: effective liquidity management have positive and significant moderating effect on profitability and credit risk management of listed deposit money banks in Nigeria. This signifies that, effective liquidity management would improve banks profitability, and subsequently improve credit risk management of the banks. Therefore, this study recommends that; the management of listed deposit money banks in Nigeria should pay adequate attention on liquidity management, which would improve profitability and subsequently enhance credit risk management.
Authors and Affiliations
Hauwa Modu Kumshe , Mohammed Abba , Bamanga Umar , Salihu Aliyu Modibbo
The Influence of Organizational Support and Proactive Personality on Employee Creativity Mediated by the Meaning of Work at PT Sumitan Artha Valutama
This research aims to determine the effect of 1) organizational support and proactive personality on the meaning of work, 2) organizational support and proactive personality on employee creativity, 3) meaning of work on...
Assessing the Effect of Technological Integration on Procurement Efficiency of Zamtel, Lusaka, Zambia.
This study purposed to assess the effect of technological integration on procurement efficiency at Zamtel, Lusaka. The specific objectives were: (1) to analyze the current state of technological integration in Zamtel's p...
Applying Mass Communication to Increase the Rate of Participation in Voluntary Social Insurance in Vietnam
Communication affects employees' awareness of the State's social security policies, from awareness to employees' behavior. The article presents the current status of participation in Voluntary Social Insurance in Vietnam...
Effect of Institutional Ownership and Audit Committee to Underpricing in Indonesian Stock Exchange
Underpricing is a phenomenon that remains unresolved. Between 2015 and 2022, 83 percent of companies listed on the Indonesia Stock Exchange (IDX) experienced underpricing. Information asymmetry is often cited as the prim...
Categorical Modeling of Determinants of Financial Inclusion and Financial Literacy of Women MSMEs in Pacitan
Preliminary research data prior to the Covid-19 pandemic, namely that 150 women MSME had unique characteristics in terms of sociodemographic factors and levels of financial literacy and inclusion. It can be empirically p...