Abstract
The primary aim of this study is to examine the relations between international financial transactions and corporate performance in a dynamic financial market within the banking industries using Annual Time Series Data of the Variables. The annual time series data were sourced majorly from central bank of Nigeria statistical bulletin. This study covers 33 years period between 1980-2013. Econometric techniques of ordinary least square (OLS) Augmented were employed in the analysis. Return on investment was used as a measure of corporate performance. The international financial transactions measure includes (growth of cross-border credits to total deposit money banks assets, growth of non oil export to deposit money bank asset, cross border banking claims to total deposit money bank assets and exchange rate) as independent variables. The results indicate that corporate performance in a financial market which is measured by return on Investment has a positive and significant relationship on growth of cross boarder credit to total deposit money banks assets, growth of non-oil export to deposit money banks assets, cross boarder banking claims to total deposit money bank assets and ratio of exchange rate of Naira to Dollar. Consequently, it is recommended that there is every need for the deposit money banks management to strengthen their international financial transactions management scope as the indicators studied largely exhibit strong influence on the performance of deposit money banks.
Highlights
The corporate performance in international financial transactions over the years has remained puzzled especially as a result of global financial crises
Looking at the estimation results, it is observed that two of the independent variables, Cross Boarder Banking Claim to Total Banks Assets and Exchange Rate of Nigeria’s Naira to America’s Dollar are statistically significant in explaining variability in Corporate performance of the deposit money banks captured by their Return on Investment at 5% level of significance
The opinion that the global monetary arena can affect the performance of the financial market with the emerging economies can be traced to the global monetary crises of the 1970’s that led to the devaluation of Nigerian currency
Summary
The corporate performance in international financial transactions over the years has remained puzzled especially as a result of global financial crises. This is because the performance of financial market of the emerging economies like Nigeria has received an increasing attention by researchers in the last decades after the global financial crisis between 2007 and 2008 that affected negatively cross boarder capital flows. Much of the research on international financial transactions and performance of deposit money banks of the emerging financial markets is recent with still many conceptual and empirical gaps.
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