RISK CONTROL AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA
Journal Title: Gusau Journal of Accounting and Finance - Year 2021, Vol 2, Issue 4
Abstract
Optimal risk management strategy is vital for the reduction of threats that may hinder business performance.This investigation was conducted to study the influence of risk control on financial performance of deposit money banks quoted on the Nigeria Exchange. The study adopted the ex-post facto research design while the population of the study comprised of all quoted deposit money banks on the Nigerian Exchange from 1st Jan.2009 to 31st Dec.2020. The sample size of 8 banks was selected randomly by adopting the Yamane formula. Secondary data was extracted from the financial statements of the sampled banks covering the period of 10 years, 2009 to 2018. The study found that liquidity risks and credit positively significantly impact the financial performance of deposit money banks in Nigeria. Whereas, asset turnover ratio asserts an insignificant negative effect on the performance of banks in Nigeria. Additionally. Non- performing loan ratio significantly negatively impacted performance of deposit money banks in Nigeria. Based on these findings, the study recommends that, Nigerian deposit money banks should step up their liquidity and credit risks for optimum performance while trying to utilize the available resources for maximum revenue generation. More so, deposit money banks should monitor its non-performing loan ratio for optimum performance.
Authors and Affiliations
Latifat Abdulsalam Abdulfatah, Agbi Eniola Samuel, Lateef Olumide Mustapha
Keywords
Related Articles
- EP ID EP709140
- DOI -
- Views 113
- Downloads 0
EFFECT OF FIRM SIZE ON EXPECTED RETURNS OF LISTED COMPANIES IN NIGERIA CAPITAL MARKET
Over the years, Nigeria capital market has experienced persistent decrease in performance. Investment decision is one of the key corporate decisions that affect firm financial performance. This study investigated the eff...
FOREIGN RESERVE ACCUMULATION AND MACRO ECONOMIC VARIABLES OF SUB-SAHARAN AFRICAN COUNTRIES
This study investigates the effect of foreign exchange reserves accumulation on economic stability proxied by inflation, unemployment, exports and GDP for a sample of 49 Sub-Saharan African countries for the periods 200...
IMPACT OF FIRM SPECIFIC ATTRIBUTES ON CORPORATE TAX AGGRESSIVENESS OF LISTED MANUFACTURING FIRMS IN NIGERIA
This study investigates the impact of firm specific attributes on corporate tax aggressiveness by listed manufacturing companies in Nigeria. Firm attributes in this study were measured by firm profitability, firm levera...
MODERATING ROLE OF AUDIT QUALITY ON THE VALUE RELEVANCE OF ACCOUNTING INFORMATION OF LISTED FIRMS IN NIGERIA
This study empirically examined as to whether earnings per share (EPS), book value per share (BVP), cash flow per share (CFPS), and dividend per share (DPS), as well as the interaction of audit quality with EPS, BVPS, C...
EFFECT OF GLOBAL CRUDE OIL PRICE ON EXCHANGE RATE AND INFLATION RATE IN NIGERIA
The aim of this study is to assess the effect of global oil price volatility on exchange rate and the inflation rate on Nigerian economic activities. The study also attempted to explained how naira will gain value as a r...