Abstract
In this study, we examined the effect of liquidity management on the performance of banks in Nigeria. Our sample comprised 18 banks included in the Nigerian Stock Exchange (NSE) from 2011 to 2017. Thus, the firm-year sample constitutes 90 (18 banks × 5 years) financial statements. We found that liquidity management positively and significantly affected banks’ profitability. Capital adequacy significantly affected return on assets, return on equity, and return on capital employed. Similarly, we found a significant positive effect of asset quality on the performance indicators. The analyses also showed that the liquidity ratio effect is positive and significant on the performance indicators. This result shows that banks with proper liquidity management will increase their profitability over time. This suggests that to increase the overall networth of shareholders, banks should place a strong emphasis on liquidity management. Thus, liquidity should be managed to minimise potential default risks.
Highlights
The management generally plays a significant role in the success of institutions, especially those institutions that depend on the human element in their outputs
The change management continuously serves as a planned process of altering, amending, omitting or adding some of the objectives and policies of sports institutions, the values and trends of individuals and groups working in those sports institutions, including the Jordan Football Association, in the capabilities and resources available to them, or even in the means and methods of work to impose more effective performance of institutions and achieve high efficiency (Joan, 1999)
The researcher observed through his work in the Football Association that the Football Association relies on a traditional approach and does not effectively face problems at the managerial, training or refereeing level and that there is no flexibility in the used policies
Summary
The management generally plays a significant role in the success of institutions, especially those institutions that depend on the human element in their outputs. The change management continuously serves as a planned process of altering, amending, omitting or adding some of the objectives and policies of sports institutions, the values and trends of individuals and groups working in those sports institutions, including the Jordan Football Association, in the capabilities and resources available to them, or even in the means and methods of work to impose more effective performance of institutions and achieve high efficiency (Joan, 1999). The sports institutions with various sizes and nature of their activities need leaders who believe in change management in achieving the objectives of these institutions as well as completing their work in keeping with the developments that take place in the continental and / or international sports arena. The researcher observed through his work in the Football Association that the Football Association relies on a traditional approach and does not effectively face problems at the managerial, training or refereeing level and that there is no flexibility in the used policies
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