THE IMPACT OF INTERNAL FACTORS ON FINANCIAL PERFORMANCE: AN EMPIRICAL STUDY OF NIGERIAN DEPOSIT MONEY BANKS

Abstract

This empirical study investigates the impact of internal factors on the financial performance of Nigerian Deposit Money Banks (DMBs). Internal factors, such as capital adequacy, asset quality, management efficiency, earnings quality, and liquidity, play a critical role in determining the financial health and profitability of banks. Understanding the relationship between these internal factors and financial performance is crucial for banks' sustainable growth and stability. The study utilizes a panel dataset comprising financial data of Nigerian DMBs over a specified period. Multiple regression analysis is employed to examine the association between internal factors and financial performance measures, such as return on assets (ROA) and return on equity (ROE). The findings of this study provide valuable insights into the influence of internal factors on the financial performance of Nigerian DMBs and contribute to the existing literature on banking performance.