Deposit Money Banks In Nigeria Research Articles

Technology-Based Forensic Auditing and Financial Crime Detection: An Empirical Analysis of Deposit Money Banks in Nigeria

The advent and rapid rate of technological development have prompted various fields of study to receive a new touch. One of those fields of study that has been revamped by the technological revolution is accounting. This study examined technology-based forensic auditing and financial crime detection: an empirical analysis of deposit money banks in Nigeria. The research design adopted in the study is the survey design. The survey design was adopted because the data for the study was extracted through the primary method of distributing questionnaires to the respective respondents. The population of the study is made up of the accounting staff of some selected deposit money banks in Abuja, Nigeria. The total population is made up of 58 persons. The method that was used in collecting data for the study was the questionnaire instrument. The questionnaire was distributed to the respondents to extract specific information in line with the objectives of the study. The method of data analysis that was used in this study is multiple linear regression with the application of the Ordinary Least Squares (OLS) technique. The findings of the study reveal that technology-based forensic auditing contributes significantly to financial crime detection in selected deposit money banks in Nigeria. The implication of this finding is that deposit money banks have already embraced and started applying technologically based forensic auditing in their financial crime explorations. It is therefore the recommendation of the study that auditors should stay abreast of the updates of other technological forensic auditing tools and step up their financial intelligence skills by embedding textual analysis in audit engagement to sharpen their skepticism for proper audit evidence and also favorably influence the technological forensic audit quality.

Forensic Accounting and Corporate Fraud in Deposit Money Banks in Nigeria

This study examined forensic accounting and corporate fraud in Nigerian deposit money banks. The components of the study state that ten employees were randomly selected from ten banks, which represented all of the Deposit Money Banks in Ekiti State, Nigeria. As a result, a purposive sample technique was used to select the Head of Operations, Fund Transfer Officer, Resident Internal Control Officials, and Cash Officials. A self-structured questionnaire used to collect the required data from the respondents underwent a validity and reliability test. Using Cronbach Alpha, the study's dependability coefficient was 0.782, which was considered high. The collected data was examined using multiple regression. In deposit money banks, it was discovered that forensic observation, 0.339 (p=0.041<0.05), 0.530 (p=0.001<0.05), and 0.341 (p=0.013<0.05) respectively, benefited from forensic interview, forensic interrogation, and forensic observation. Furthermore, a positive and significant effect on fraud detection and prevention in deposit money institutions was observed for forensic review, forensic inspection, and forensic documentation, to the tune of 0.291 (p=0.036<0.05), 0.603 (p=0.000<0.05), and 0.611 (p=0.00<0.05), respectively. In terms of fraud detection and prevention, it has been shown that forensic litigation and investigation play a significant role in corporate fraud. Therefore, it was suggested that deposit money institutions use trained forensic accountants who are skilled in implementing the appropriate deterrent measures in order to stop fraud before it starts. This type of research could be expanded to include additional businesses from various industries.

A COMPARATIVE ASSESSMENT OF THE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Bank performance in terms of increase earnings has implication for the survival and growth of the sector, improving the financial results constitutes the most critical aspect of performance of banks. It is against this background that the study comparatively assessed the performance of some selected deposit money banks in Nigeria. Banking in Nigeria has undergone remarkable changes since 2005 bank consolidation. The era of armchair banking has gone. It has become a different ball game in terms of competition and its inherent strategies. This transition eventually brings the Nigerian banks to be in need of capital, asset creation, earnings, liquidity and the management to manage the risk exposure of the aforementioned. In this context, the present study assesses and compares the performance of the Nigerian banks from 2005 to 2015 through their liquidity, asset quality, profitability and share price. Moreover, the Nigerian banks are ranked based on their performance. The ranking result can be used to analyze the strengths and weaknesses of a bank compared to its competitors. Simple random sampling was used to obtain five out of the twenty-one deposit money banks using lottery method. Furthermore, data for the study was obtained from the annual audited reports of the selected banks and data was analyzed using analysis of variance (ANOVA) and it was found that there is a statistically significant difference in their various performance level with regards to liquidity, asset quality, profitability and share price. The significant differences among the banks in terms of the aforementioned, implies that the null hypothesis is thereby rejected and alternate hypothesis accepted, which can now be stated as; there is significant difference between the liquidity levels of the selected banks and their performances; there is significant difference between the asset quality levels of the selected banks and their performances; there is significant difference between the profitability levels of the selected banks and their performances; there is significant difference between the share price levels of the selected banks and their performances. The study concluded with recommendations as to how the various banks can reduce the level of non-performing loans which is cardinal to improvement in banks performance.

Influence of Debt Financing on Income Smoothing Practices among Listed Deposit Money Banks in Nigeria

This study examined the influence of debt financing on income smoothing among Nigerian listed deposit money banks.  The study is specifically examined the influence of total debt ratio on income smoothing.  Data collected from sampled twelve (12) listed Nigerian DMBs out of the fourteen (14) listed banks for period from 2009 to 2021. Data were analyzed using random effect panel regression. The results revealed that total debt to equity ratio exerts negative and significant influence on income smoothing measured by absolute discretionary accrual (t= -2.87; p<0.05) respectively. These implied that an increase in total debt ratio will reduce income smoothing. This suggests that the probability of being income smoother is lower when a firm has higher total debt. The study concluded that total debt ratio was negatively influenced the income smoothing among listed deposit money banks. The study therefore, recommends that Nigerian banks should carefully manage their debt levels so as to avoid income smoothing practices by management.

Human Capital Development and Financial Performance of Deposit Money Banks in Nigeria

The study determined the relationship between human capital development and financial performance of deposit money banks in Nigeria using an ex-post-facto research design. The 22 listed commercial banks in Nigeria are our population. The sample size of this study was two listed commercial banks in Nigeria, obtained using the purposive sampling technique, spanning 2010 to 2022. These 2 banks (Fidelity Bank and UBA) have the required up-to-date information needed by the researcher. Secondary data obtained from the Nigerian exchange group were analysed using multiple regression. The study revealed that a significant relationship exists between human capital development and the financial performance of DMBs in Nigeria. Hence, the researcher concluded that a significant relationship exists between human capital development and financial performance of DMBs in Nigeria. The researcher further suggested that deposit money banks in Nigeria should develop customised financial training programmes that align with their specific needs and objectives. Also, the management should offer competitive compensation packages and benefits to attract and retain top talent in the industry to boost profitability. More so, policymakers should implement skill-based pay scales because this could incentivize employees to acquire additional skills and expertise that directly benefit the bank's operations.

Effect of Human Capital Investment on Financial Performance of Listed Deposit Money Banks in Nigeria

Effect of Human Capital Investment on Financial Performance of Listed Deposit Money Banks in Nigeria

Corporate Social Responsibility (CSR) and Deposit Money Bank’s Financial Performance

The study examined the effect of corporate social responsibility on the financial performance of deposit money banks in Nigeria. Primary data were adopted for this study through the administration of some copies of questionnaire. The OLS regression was used to analyse the data and it was found out that the there is a positive significant relationship between Corporate Social Responsibility and the return on assets of commercial banks in Nigeria. It was suggested that the deposit money banks should ensure they embark on more structured and well planned Corporate Social Responsibility.

Demand Deposit Contracts and Probability of Bank Runs in Nigeria

The problem of bank runs is a global phenomenon and often damaging to the banking systems both in developed and developing countries. Monetary authorities always find it very difficult to resolve such a crisis; hence, it became imperative to examine this scenario in the case of Nigeria. Therefore, we examined the effect of demand deposit contracts on the probability of bank runs in Nigeria. This is considered a major contribution to the literature on finance from the perspective of an emerging market economy (EME). In this study, a multilevel Tobit regression approach was employed. This study identified statistically significant and positive effects of liquid assets (total assets) and total loans (total deposits) on bank runs in Nigeria. Based on the results, the study concluded that bank-specific factors have an effect on bank runs, and from these variables, liquid assets/total assets and total loans/total deposits have significant effects on bank runs. As a sequel to the findings and conclusion of this study, it was recommended that to avoid such a banking crisis, there is a need for deposit money banks in Nigeria to maintain adequate liquid assets and ameliorate the high level of deterioration in the quality of risk assets as well as the cost of funds.

Correlation Between Corporate Entrepreneurship and Organizational Performance in Deposit Money Banks in Nigeria

The study assessed the correlation between corporate entrepreneurship dimensions and performance of selected deposit money banks in Nigeria. Specific objectives include to: evaluate the correlation between corporate entrepreneurship dimensions (value creation) and customers’ retention and investigate the correlation between corporate entrepreneurship dimensions (competitive aggressiveness) and market value performance. A survey research design was used. Total population of the study was nine fifty (950) staff of Deposit Money Banks. Sample size was two hundred and eighty-one (281) using Taro Yamane formular. The convenient sampling method was adopted used while structured questionnaire was used as instrument for data collection. It was found that value creation had insignificant relationship with customers’ retention and competitive aggressiveness had a significant relationship with market value performance. Based on the findings, the study concluded that corporate entrepreneurship dimensions correlated significantly with performance of selected deposit money banks in Nigeria. The study recommends that it is highly recommended that value creation of top management should indulge the opinion of their customers through questionnaires and feedback mechanism. This would give the organisation an insight to what the customers’ expectations regarding new things that are brawling up in similar competitive organisations. In the same vein indulging customer’s opinion while launching new products, would make them feel carried along and valuable. Keywords: Corporate Entrepreneurship Organizational Performance, Deposit Money Banks

Effect of Risks Management on the Financial Performance of Listed Deposit Money Banks in Nigeria

This study examined the effect of risk management on the financial performance of listed DMBs in Nigeria. Adopting correlation research design, the target population was all the listed DMBs in Nigeria as at 31st December, 2022 and were nineteen (19) in number. Out of the 19 banks, 16 were purposively selected as sample based on the criteria that, the bank must have been listed before 31st December 2017 and also have complete annual report and account over the period of five years from 2018-2022. The study used descriptive statistics and panel regression analysis to analyze the data collected, and the results of the analyses revealed that, credit risk management, market risk management and capital adequacy risk management have positive and significant effect on the financial performance of the listed DMBs in Nigeria over the period of the study. However, liquidity risk management was found to have negative but insignificant effect on the financial performance of the banks. Hence, the study concluded that; effective risk management have positive and significant effect on the financial performance of listed DMBs in Nigeria.  Based on these findings, this study recommends that; the management of listed DMBs in Nigeria should improve and strengthen their liquidity management strategies, while keeping adequate watch on credit risk, market risk, and capital adequacy risk to further improve their financial performance. Therefore, further studies could look into the effect of effective risk management process (risk identification, assessment, monitoring, and controlling process) on the financial performance of DMBs. Also, future studies could consider the impact of the adoption of IFRS on risk management and financial performance of listed DMBs in Nigeria.

Corporate Governance Practices and Performance of Deposit Money Banks in Nigeria

Performance of deposit money banks in Nigeria. The specific objective of the study was to critically appraise the relationship between size of board of directors, composition of board members, frequency of board meetings and return on assets of deposit money banks in Nigeria. The data were sourced through secondary sources from annual reports and accounts of sampled deposit money banks in Nigeria. The stated Null Hypotheses were tested through data analysis by using the correlation analysis as analytical tool. The research findings reveal that board size has a positive and strong relationship with return on assets while board composition has a positive but moderately strong association with return on assets. Furthermore, frequency of board meetings has a negative and very weak relationship with return on assets of deposit money banks in Nigeria. The implication of the findings is that increased board size could result in the improvement of financial performance of deposit money banks. The research found that such increase in number of members of the board will generate the desired outcome if it centers on independent nonexecutive directors with wealth of corporate governance experience, sound and profitable contacts, good and relevant education. The negative relationship with frequency of board meetings implies that banks should begin to trim down on number of board meetings as research has found that frequent meetings signal a crisis or distress situation with perceptions of going concern issues and bank failure. The study recommends that new independent non-executive professionals with critical governance and management attributes could be introduced into the board to improve the quality of decisions, earnings and general performance. Frequency of Board Meetings should be reduced to save cost and time while virtual meetings should be called more often than physical meetings as distance is no longer a barrier.

Relationship of Environmental Disclosure of Renewable Energy, Carbon Emissions, Waste Management, Water Consumption, and Banks’ Financial Performance

In recent years, sustainable banking principles have been employed in the daily operations of deposit money banks in Nigeria. This study examines the relationship between environmental sustainability and the financial performance of 14 deposit money banks listed on the Nigerian Exchange Group. It focuses on the impact of environmental disclosure of renewable energy, carbon emissions, waste management, and water consumption (i.e. proxies for environment sustainability) on the bank’s return on assets (ROA i.e. proxy for financial performance). The research spans an 8-year period from 2013 to 2021, using panel data and multiple regression analysis to analyze the data. The data is collected from the annual reports of the deposit money banks listed on the Nigerian Exchange Group. The research design is ex-post facto, utilizing secondary data collection methods. The findings suggest that there is a positive but insignificant association between environmental sustainability indicators (renewable energy, carbon emissions, waste management, and water consumption) and financial performance (ROA). In conclusion, the study finds no significant relationship between and financial performance (ROA).

The Impact of Cloud Based Accounting System on the Performance of Selected Deposit Money Banks in Nigeria

The purpose of this study was to evaluate the performance of money deposit institutions in Nigeria with respect to the cloud-based accounting system. Nonetheless, survey research was used as the methodology for this investigation. The study's population consisted of 38 deposit money banks in Nigeria, and 34 sample institutions were chosen by Taro Yamene. Only 20 banks were chosen since several were difficult to get to because of distance and red tape. Each bank received 15 questionnaires, totaling 300 copies, 279 of which were fully completed and easily accessible for usage. The structured questionnaire served as the study's major source of data. Simple tables were used for descriptive analysis, while ordinary least squares (OLS) and analysis of variance (ANOVA) were used for inferential analysis. The Cronbach's Alpha test of reliability was used to test the data. The findings showed that R was 56.20%, indicating a very robust model; additionally, 55.70% of R Square demonstrated that all variance in deposit money banks' performance can be attributed to the cloud-based accounting system. The study found that the performance of Nigerian deposit money banks and the cloud-based accounting system are positively correlated.

Value relevance of IFRS adoption in the deposit money banks in Nigeria

The prime role of financial statements is to provide information that is useful to existing and potential investors, creditors and other users in making rational investment and similar decisions. Accounting information is a product of Generally Accepted Accounting Principles (GAAP), standards and other institutional settings which are presumed to shape the form and content of the financial reports. Uniform accounting standards assist investors and other market participants to effectively analyze firms from countries with accounting standards that they are familiar with and that IFRSs are adopted in order to achieve information of higher quality than local standards. Value relevance is one of the most common methods of examining the quality of accounting information. Information has the quality of relevance when it influences the economic decisions of users. This study examined value relevance of accounting information after the mandatory IFRSs adoption in the Nigerian Banking industry. Correlational research design using pre-and-post IFRSs regime analysis in a sample of 15 banks for a period of 8 years (2008-2015) was employed. Panel regression technique of data analysis was used and the study found that the adoption of IFRS has significantly improved the value relevance (decision usefulness) of accounting information of deposit money banks in Nigeria during the period covered by the study. However, the results show that the adoption of IFRS improves the value relevance of book values of equity and accounting earnings significantly. We recommend that accounting regulators should investigate the implementation credibility of IFRS in the Nigerian banks.

Effect of Electronic Fraud on the Financial Performance of Banks in Nigeria

The study investigated the effect of electronic fraud on the financial performance of banks in Nigeria. The specific objectives were to investigate the effect of electronic fraud through online web transactions, evaluate the effect of electronic fraud through automated teller machine, to determine the effect of fraud through point of sale machine, and to investigate the effect of fraud through mobile phone USSD transactions on the financial performance of selected deposit money banks in Nigeria. Panel Generalized method of moments (GMM) was used to analyze the panel series of the model. The Hausman test indicated the random effect model as most fit for the estimation. The major findings of the study revealed that fraud through the automated teller machine (AEF) has significant negative impact on the financial performance of the deposit money banks in Nigeria. The panel regression result also revealed that fraud through the mobile phone channel (MPEF), and fraud through the online banking channel (OBEF) had significant negative effect on the financial performance of the banks studied. The study concluded that electronic fraud has significant negative relationship with the performance of banks. The policy implication of these findings holds for both management of banks and the financial sector authorities to engineer strategic fraud mitigation technology to strengthen confidence in the financial system. Based on the findings, the study recommended that there is an urgent need for effective monitoring of bank fraud which will allow for the growth of Nigeria deposit banks performance. This is necessary especially this period that the world is going cashless and e payment instrument are used for cashless banking system. And failure to do that, will affect customer’s confidence in the industry. It is also recommended that Bank fraud shall be reduced through effective supervision and regulation of banks by the monetary authorities so that financial industry will contribute to the economy.

Mergers and Acquisition of Deposit Money Banks in Nigeria: Empirical Analysis of Contribution to the Economic Growth of Nigeria (2006-2021)

Despite impressive results declared regularly by banks in Nigeria, their contribution to the economic growth of Nigeria has been a subject of mixed results as economic growth has been inconsistent for some time and historically been characterised by oscillations in both positive and negative directions. The Central Bank of Nigeria embarked on a major Mergers and Acquisition of Banks in 2005. The study evaluated the effect of Mergers and Acquisition of Deposit Money Banks’ contribution to Economic Growth of Nigeria. The study adopted ex-post facto research design. Total yearly data for Economic Growth, Total Commercial Bank Lending and Total Commercial Bank Assets were extracted from the Central Bank Statistical Bulletin for the period 2006 to 2021 and they are considered valid and reliable. The study adopted descriptive and inferential statistics and the Auto-Regressive-Distributed Lag-ARDL model was adopted for data analysis.The elasticity of Total Bank Lending- upsurges pertaining to Gross Domestic Product (GDP)- is 0.9951, indicating that ceteris paribus, a 1% rise in is expected to increase (Economic Growth ) by 0.995. The positive nexus was statistically significant at 5% (p = 0.009), showing that Total Bank Lending ( ) impact economic growth positively ( ) in the long run. Furthermore, the study revealed that the Total Bank Assets- depicted a positive nexus with GDP- . The elasticity of pertaining to is 0.5773, indicating that ceteris paribus, a 1% rise in is expected to increase Economic Growth- by 0.5773%. The positive nexus was statistically significant at 0.05 (p = 0.018), hence denoting that Total Bank Assets have a significant individual impact on Economic Growth ( ) in Nigeria in the long run. The study concluded that Total Commercial Bank Lending and Total Commercial bank Assets jointly influenced Economic Growth positively. It is recommended that the policy makers should pay attention to Mergers and Acquisition of Banks and continue to ensure that banks are strong enough to support Economic Growth.

A Survey on the Role of Technological Innovation in Nigerian Deposit Money Bank Fraud Prevention

Technological innovation plays a pivotal role in transforming the landscape of fraud prevention within Nigeria Deposit Money Banks (DMBs). This research explores the multifaceted impact of advanced technologies on fortifying the defenses of DMBs against fraudulent activities. Leveraging a comprehensive analysis of survey results and empirical data, the study delves into the perceptions and attitudes of stakeholders towards the integration of innovative solutions, including advanced data analytics, machine learning algorithms, real-time monitoring systems, and block chain technology. The findings reveal a widespread consensus among participants regarding the positive impact of these technologies on early fraud detection, prevention, and overall security.  Notably, 86% of respondents acknowledge the positive impact of advanced data analytics and machine learning algorithms, emphasizing their potential benefits in thwarting fraudulent activities. Real-time monitoring systems, artificial intelligence, robust encryption, and cyber security protocols were also recognized by a majority of participants, affirming their crucial roles in bolstering fraud prevention measures within DMBs. The study employs a chi-square test to establish significant relationships between technological innovation and the enhancement of fraud prevention mechanisms, supported by calculated values exceeding critical thresholds. Furthermore, the abstract highlights the importance of continuous staff training, collaboration with fintech innovators, and regular security audits as integral components of a holistic fraud prevention strategy. The overall positive sentiments expressed by respondents underscore the transformative potential of technological innovation in mitigating fraud risks. This study contributes valuable insights that inform decision-making processes, guiding the strategic integration of advanced technologies within the Nigerian banking sector to reinforce operational frameworks against emerging fraud challenges. Technological innovation stands as an indispensable catalyst for fortifying the defense mechanisms of Nigeria Deposit Money Banks against fraud. The seamless integration of advanced technologies not only enhances security measures but also fosters a more robust, efficient, and resilient banking system, thereby mitigating risks and fostering sustainable growth in the financial sector.

An Assessment of Capital Structure Decisions among Listed Deposit Money Banks in Nigeria

This study aimed to assess Capital Structure Decision among listed Deposit Money Banks (DMBs) in Nigeria by assessing the effects of total equity and debts on capital structures of DBMs in Nigeria. The study alsocorrelated asset tangibility to firm size and examined the effect on the capital structure of the Banks. The study used secondary data collected from the annual accounts and reports of the selected ten (10) banks purposively selected for twelve (12) years covering 2011- 2022. The study’s population is made up of twenty-four existing listed deposit money banks on the list on the Nigerian Exchange Group plc based on the availability of data. The study employed explanatory variables of total equity, total debt, asset tangibility, and firm size to capture financial statement components. Data was analyzed using descriptive analysis and panel regression models. Findings revealed that equity, debts, and assets tangibility have positive and significant effects on the capital structure decision of the selected banks, while the firm’ size does not. The study concluded that equity capital, debt capital, and long-term assets are relevant in capital structure decision of listed deposit money banks in Nigeria. It is recommended that management should carefully assess the appropriate mix of equity and debt that maximizes income potentials and continuity of the firm in the context of substantial tangibility of the assets.

Financial Derivatives and Its Effects on Financial Performance of Deposit Money Banks in Nigeria

This study examined the relationship between financial derivatives and financial performance of deposit money banks (DMBs) in Nigeria from the period of 2013 to 2022 (10years). Financial derivatives [proxied with Financial Liabilities Derivatives (FLD), Foreign Exchange Derivatives (FED), Trading Income on Derivatives (TID), Loan and Advance to Customers (LADC) and Bank Size (BS)] (independent variables) and financial performance [proxied with Return on Assets (ROA)]. The Ex-Post Facto research design was used. Ex-Post Facto research design aids in answering the who, what, when, where, and how questions linked with a certain study problem. The ex-post facto research design is used to acquire information on the current state of a phenomenon and to define ‘what exists' in terms of variables or conditions in a setting that is specifically relevant to the issue under investigation. Data on financial derivatives and financial performance were obtained from the annual reports and accounts of ten (10) DMBs listed in Nigeria Exchange Group that has international presence. The data set was described using descriptive statistics, followed by the correlation analysis was used to ascertain the co-movement of the independent variables in relation to the dependent variable and several diagnostics tests. Since the data are panel series that the unit root test was conducted to ascertain if the data are stationary in order to have accurate regression result followed by single equation co-integration test while the Multiple Regression analysis were employed with the aid of E-VIEW version 9.0 for the purpose of testing the research hypotheses raised in chapter one. It evident that measures of financial derivatives used has mixed effects on ROE of DMBs in Nigeria. However, majority of the independent variables such TID, LADC and BS has significant effects on ROE of DMBs while FLD and FED established an insignificant effects on ROE of DMBs in Nigeria. Hence, the study

Liquidity Management and Profitability of Deposit Money Banks in Nigeria: An Impact Analysis

This study empirically examined the impact of liquidity management on profitability of deposit money banks in Nigeria. The specific objectives were to determine the impact of cash management on banks’ return on asset, evaluate the impact of shareholders’ capital on banks’ return on asset and ascertain the relationship between loan to deposit ratio and return on assets of banks. Expost facto design was adopted. The data used for this study were collected from Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporations (NDIC) covering the period 1995-2021. Data collected were analyzed using descriptive statistics and multiple regression analysis. Findings revealed that cash management and shareholders’ capital have significant relationship with banks’ return on assets. It however showed that there is significant relationship between loan to deposit ratio and return on assets. Based on the findings, it recommended that the bank management device efficient cash management policies to enhance their profitability