Deposit Money Banks In Nigeria Research Articles

Financial reporting quality and disclosure on stock price of listed deposit money banks in Nigeria

Due to the lack of a regulatory framework, financial scandals, fraud and poor disclosure in financial reports, investors and other stakeholders lose confidence in the firm's performance, which could lead to lower share prices. Investors and financial analysts who have noticed the impact of accounting quality and disclosures on stock prices have necessitated this study. This study looked at the impact of financial reporting quality and disclosure on the stock price of listed deposit money banks in Nigeria. The study made use of secondary data gathered from the annual report of listed DMB in Nigeria. The data generated were analysed using descriptive statistics, correlation analysis and Panel ordinary least square regression to understand the degree of relationship among the variables. A correlation matrix was carried out to test for multi-collinearity within the selected variables. Findings revealed that the combined effect of financial reporting quality and disclosure has a positive and significant impact on the stock price of listed deposit money banks in Nigeria. The study thereby recommends that for financial institutions to achieve sustainable performance levels, they should ensure that they meet stakeholders’ demands, which mainly rest on accounting information comprehensiveness and quality. Furthermore, the quality of accounting should be improved by ensuring companies adhere to accounting standards and financial regulations regarding disclosures.

Impact of Bank-Specific Factors on Capital Adequacy in the Nigerian Banking Sector: An Empirical Analysis

The study investigates the divergence between the capital adequacy of banks in Nigeria and the Bank for International Settlements' (BIS) global standards for bank capital adequacy. It specifically examines the factors affecting capital adequacy in Nigerian banks. The main objective is to evaluate how specific factors impact capital adequacy within this context. Data spanning from 2012 to 2022 from the Central Bank of Nigeria's Statistical Bulletin was collected for 13 selected deposit money banks in Nigeria. Econometric methods were employed to analyse this data. The findings indicate that asset quality and return on equity (ROE) adversely affect the capital adequacy of Nigerian deposit money banks during the study period. Conversely, bank liquidity, bank size, management efficiency, non-performing loans, and return on assets positively influence bank capital adequacy in Nigeria. It is recommended that particular attention be given to bank liquidity and bank size, as these factors significantly enhance the capital adequacy of Nigerian banks within the reviewed of period

Effect of Audit Firm Characteristics on Audit Quality of Quoted Deposit Money Banks in Nigeria

This study investigates how the characteristics of audit firms are associated with audit quality in deposit money banks situated in Nigeria. The core explanatory variables employed or adopted were audit fees, audit tenure, and audit rotation on audit quality. The study adopted an ex-post factor research design. The population of the study consists of twelve (12) quoted deposit money banks on the Nigerian Exchange Group (NGX) as of 31st December, 2022, and twelve (12) banks were taken as the sample size using census sampling technique. The study period is from 2013 to 2022. The data were collected from the annual reports and accounts of the selected banks. Data collected were analyzed using descriptive and inferential statistics, and the hypotheses were tested using feasible generalized least squares regression analysis. The empirical findings revealed that audit fees and audit rotation have a positive and significant effect on audit quality, while audit tenure has a negative and significant effect on audit quality. On the basis of the findings, the study concludes that audit fees and audit rotation are important ingredients in achieving good audit quality. Establishing rotation programs with auditing should be implemented by all organizations seeking better planned undertakings of tasks regarding finance. The study recommended that banks should make use of standard audit firms like the Big 4 so as to get better audit quality, and there should be a good policy for audit rotation for the banks in order to achieve better audit quality.

Risk Management and Performance of Deposit Money Banks in Nigeria

This study examined the relationship between risk management and performance of deposit money banks in Nigeria as moderated by environmental turbulence. The study adopted the cross-sectional research survey design. Primary data was generated through structured questionnaire while the population of study was the 24 deposit money banks in Nigeria. The entire population of 24 deposit money banks were adopted as a census. However, the number of respondents/ participants in the study was one hundred and twenty senior level managers of the 24 Deposit Money Banks in Nigeria. The reliability of the instrument was achieved by the use of the Cronbach Alpha coefficient with all the items scoring above 0.70. The hypotheses were tested using the Spearman’s Rank Order Correlation Coefficient. The tests were carried out at a 0.05 significance level. Findings revealed that there is a significant relationship between risk management and performance of deposit money banks in Nigeria. Therefore, the study concludes that the adoption of risk management practice positively enhances the performance of deposit money banks in Nigeria. This implies that by adopting a proactive approach to risk management, deposit money banks can identify, assess, and mitigate potential risks that could adversely impact their operations. Hence, the study recommends that deposit money banks should conduct regular and thorough risk assessments to identify potential risks that could impact the bank's operations and performance. This includes assessing credit, market, liquidity, operational, and other relevant risks. Understanding the risk landscape is crucial for developing effective risk management strategies.

Effect of Financial Metrics on Risk Indicators in Nigeria Listed Deposit Money Banks

This study investigates the effect of financial metrics on risk indicators in Nigerian deposit money banks. The analysis employs yearly time series data spanning from 2007 to 2022, acquired from the Exchange Group PLC. Descriptive statistics, panel unit root tests, Hausman tests, and Panel Ordinary Least Squares (OLS) procedures were used at a 95% confidence interval. The study utilized secondary data sourced from the Exchange Group PLC database. The R-squared (0.564390) and Adjusted R-squared (0.540629) values indicate that the models have strong explanatory power. The results show that all variables are stationary at their levels (I(0)). The primary financial metrics influencing risk indicators among deposit money banks in Nigeria are revenue growth, net interest margin, and earnings per share. It was recommended that banks should implement effective risk management systems that can handle increased complexity and scale of operations, and regularly update them, leveraging blockchain technology for decentralized risk management as it relates to revenue growth rate of banks. Maintain a healthy net interest margin through effective risk management practices and internal controls, and utilize this strength to invest in risk mitigation measures, introducing incentive programs to encourage employee involvement in risk management. Conduct regular financial reviews and audits to ensure accurate earnings reporting and risk identification, utilizing AI-powered tools for earnings analysis to identify anomalies and potential risks. Prioritize prudent lending practices and effective risk management to maintain financial stability, implementing dynamic adjustments to the debt-to-equity ratio in response to changes in risk detection needs.

Relevance of Computer in Processing Accounting Information: Evidence from Deposit Money Banks in Nigeria

Relevance of Computer in Processing Accounting Information: Evidence from Deposit Money Banks in Nigeria

Operating Efficiency and Financial Performance of Deposit Money Banks in Nigeria

This study has examined the influence of operating efficiency on the financial performance of Deposit Money Banks (DMBs) in Nigeria. Data used were extracted from the Annual Reports and Accounts of selected twelve (12) listed banks as on May 13, 2021 from 2011 to 2020. The Pearson Product Moment Correlation analysis was employed to determine the relationship between operating efficiency and financial performance of sampled banks. Panel Least Square regression was deployed to analyse the effect of operating efficiency on financial performance of the DMBs while the one-way ANOVA test was engaged in ascertaining significant differences in financial performances of the Systemically Important (D-SIBs) and the Non-Systemically Important (D-NSIBs) Banks. Findings revealed positive significant effect of operating efficiency on financial performance of all DMBs while there was no significant difference in the mean financial performances of the D-SIBs and D-NSIBs in Nigeria over the study period. It is therefore recommended that bank managements exercise due diligence in controlling operating costs of banks and Regulators should pay equal supervisory and regulatory attention to all banks without discrimination as all DMBs have the potential to exhibit systemic importance in the long run.

CEO Political Connection, Shareholding and Financial Distress of Deposit Money Banks in Nigeria

Purpose: Prior studies conducted to investigate the issues of CEO political connection and shareholding on financial distress remain inconclusive. It is based on the above, that this study is set out to examine the effect of CEO political connection and shareholding on the financial distress of DMBs. Methodology/approach: This study adopted an ex post facto research design based on the nature and the problem of the research. The study utilized annual financial data from quoted DMBs from 2012 to 2021. The data were subjected to diagnostic tests and the Hausman test selected the use of REM over the FEM for testing the hypotheses. Results/findings: The main results show that CEOP (?=0.275582; p=0.7029) had a positive non-significant effect on financial distress; CEOS (?=-0.201171; p=0.0039) had a negative significant effect on financial distress. Limitations: The study does not include other control variables such as firm size and firm leverage which can also affect financial distress. Contribution: This research contributes first, from the focus on developing country settings is important from a theoretical and empirical standpoint because the findings help us comprehend how political connection and shareholding status of CEOs determine the distress score of the DMBs in the absence of a supportive corporate and legal framework. Novelty: This study from the context of a developing nation with weak institutional governance, examines how CEO political connection and shareholding explain the financial distress score of the DMBs which prior studies have weakly examined.

Continuous Learning and Job Satisfaction of Employees of the Selected Deposit Money Banks in Nigeria

This study examined the effect of continuous learning on job satisfaction of employees of selected Deposit Money Banks in Nigeria. This study adopted quantitative research technique using questionnaire. The population of the study consists of two thousand, three hundred and forty-two (2,342) staff of selected Deposit Money Banks in Nigeria. Multi-stage sampling technique was utilized to select the respondents from the selected Deposit Money Banks. The sample size of three hundred and thirty-one (331) respondents were determined through Raosoft sample size calculator. Data were administered and collected through the primary source with the aid of a questionnaire in gathering data from managerial staff of the selected Deposit Money Banks using a six (6) point scale. The six (6) point Likert scale ranges from 6 points indicating strongly agree, and 1 = strongly disagree. Findings from the study shows that continuous learning meaningfully influenced job satisfaction of employee in the selected Deposit Money Banks in Nigeria. The study concluded that continuous learning had significant effect on job satisfaction of employees in the selected Deposit Money Banks in Nigeria.

Impact of Liquidity Risk and Leverage on the Financial Performance of Nigerian Deposit Money Banks

This study investigates the impact of liquidity risk and leverage on the financial performance of listed Deposit Money Banks (DMBs) in Nigeria. The study utilized a census approach to gather data from all 15 listed DMBs on the Nigerian Exchange Group as of December 31, 2022. The study spanned from 2013 to 2022, employing various statistical analyses including descriptive analysis, correlation analysis, skewness and kurtosis tests for normality, multiple regression models for fixed-effects and random-effects models, and the Hausman test to ensure robust findings. The results indicated that liquidity risk exhibited a positive and significant impact on return on equity (ROE), a measure of financial performance, with a coefficient of 0.132 and a p-value of 0.000, suggesting that effective management of liquidity risk enhances profitability. Conversely, leverage was found to have a significant negative impact on ROE, with a coefficient of -1.351 and a p-value of 0.007, highlighting that higher debt levels substantially reduce profitability. In conclusion, the study suggests that while liquidity risk can be effectively managed to enhance profitability, excessive leverage poses significant threats to financial performance. The findings underscore the importance of robust risk management strategies for improving the financial performance of listed DMBs in Nigeria. These insights are crucial for policymakers, banking executives, and investors seeking to enhance the stability and performance of the banking sector.

Assessing the Impact of Credit Risk Management on Performance of Deposit Money banks in Nigeria

Assessing the Impact of Credit Risk Management on Performance of Deposit Money banks in Nigeria

Dividend Policy Decisions and Share Price Volatility of Deposit Money Banks in Nigeria

Dividend Policy Decisions and Share Price Volatility of Deposit Money Banks in Nigeria

Impact of Corporate Governance on Financial Performance: A Study of Deposit Money Banks in Nigeria

Impact of Corporate Governance on Financial Performance: A Study of Deposit Money Banks in Nigeria

Effect of Audit Fees and Audit Tenure on Earnings Management of Listed Deposit Money Banks in Nigeria

This paper assesses the effect of audit fees and audit tenure on earnings management of listed deposit money banks in Nigeria. The population consists of the 14 DMBs in Nigeria spanning from 2011 to 2021, out of which twelve banks were selected as the sample size using a criterion on the availability of data. The paper uses a longitudinal research design to investigate the effect of audit fees and audit tenure on the earnings management of listed DMBs in Nigeria. The audited financial annual reports of the banks chosen were used to collect data for the independent variables such as audit fees and audit tenure, as well as the dependent variable earnings management. The Generalized Method of Moment (GMM) was then employed for analyzing the data. The result shows that audit fee had a coefficient of -0.1461at a significant level of 0.0000. Audit tenure has positive coefficient of 0.1405at a significant level of 0.0001 influences on listed DMBs' management of earnings in Nigeria. The study therefore concludes that, audit fee curtail EM of listed DMBs in Nigeria while audit tenure do not ameliorate EM of listed DMBs in Nigeria. In order to prevent the threat of familiarity, the paper recommends that DMBs in Nigeria should stick to the statutory and professional standard audit fees and discourage long-term audit firm retention.

Customer Care-Specific Attributes and The Performance of Quoted Deposit Money Banks in Nigeria

This study assesses the relationship between customer care-specific attributes and the customer growth of quoted deposit money banks in Nigeria. In this study, a cross-sectional survey, which is a quasi-experimental method, was employed. This study encompasses the entire Survey Respondents of 105 sample staffs and their bank customers of the 14 quoted money deposit banks in Nigeria, serving as the accessible population for the study. Data Collection Method was the Primary Data Collection designed questionnaire. The Likert scale, consisting of response options such as Strongly Agree, Agree, Disagree, and Strongly Disagree, was employed. The study used Spearman's rho correlation to observe the statistical significance at 1% level. The result showed that p-values for all correlations are highly significant (p < 0.01), suggesting strong evidence that these relationships are meaningful. This provides confidence in the model's fitness in terms of statistical significance in the given results, with the highest being between customer growth and the number of financial products (0.494), indicating a moderate positive relationship. The coefficients show the strength of the relationships, with high values indicating stronger associations. The model's relationships are robust and not due to random chance, indicating good fitness. It was recommended that banks should ensure that customer service personnel are accessible, responsive, and effective by investing in convenient customer service channels. They should regularly provide training and development opportunities for bank customer service personnel to ensure that they can handle customer inquiries and issues effectively. They should recognize and reward the efforts of bank customer service personnel with fair and competitive salaries and benefits to motivate and retain top talent. They should also diversify the range of financial products offered by banks to meet varying customer needs and attract a broader customer base.

Effect of Corporate Governance on Banking System Stability in Nigeria

The study focused on the effect of corporate governance (CG) on banking system stability in Nigeria. The purpose of this study was to assess the effect of corporate governance on banking system stability. Data used for this study were secondary data collected from the audited annual report of 13 listed deposit money banks in Nigerian for the period of eight (8) years, the data was analyzed using STATA 14 and hypotheses were tested using random effect regression with respect to the Breusch and Pagan Lagrangian multiplier test and Hausman specification test. From the random effect regression analysis table, the results show that board size, ratio of male- female, board committee, the number of board meeting have contributed insignificantly to our model while the overall hypothesis also show an insignificant effect on CG and banks’ stability. The study recommends that since the variables used in this study have no significant effect on the banking system stability, emphasis should be shifted from these variables to other corporate governance variables. The study also suggested that More research on the study variable should be undertaken in Nigeria, this would throw more weight on the importance of corporate governance in ensuring banking system stability on a larger scale by incorporating all the deposit money banks in Nigeria.

Cloud accounting and the performance of deposit money banks in Nigeria

The current technological era of the 4th Industrial Revolution (4IR) and the realities of the COVID-19 pandemic brought about challenges and opportunities for DMBs; these challenges necessitated this study. The study examined empirically the relationship between cloud accounting and improved customer service delivery, which have effect in the financial performance of deposit money banks (DMBs). The study adopted cross-sectional survey research design. The structured Lickert scale questionnaire was raised from the objectives of the study and administered to the information technology and communication (ICT) unit of the sampled DMBs. The outcomes of the administered questionnaires were analyzed using the descriptive statistics and Spearman’s Rank Correlation Coefficient. Results show that cloud accounting has a significant positive relationship with financial performance of DMBs. In addition, Information Technology Trust has a positively significant moderating effect on the relationship between cloud accounting and financial performance DMBs. Also, the study revealed that Visualized Transaction Reporting and Self-service Transaction Reporting have significant positive relationship with productivity and profitability of DMBs. In conclusion, cloud accounting significantly moves in the same direction as financial performance. Hence, the study recommends that banks should do more investment in cloud accounting technologies for improve customer service delivery in their operations, which will in the end boost financial performance.

Effect of Liquidity and Profitability on Credit Risk Management of Listed Deposit Money Banks in Nigeria

Effect of Liquidity and Profitability on Credit Risk Management of Listed Deposit Money Banks in Nigeria

Effect of audit quality on earnings management of listed deposit money banks in Nigeria

Effect of audit quality on earnings management of listed deposit money banks in Nigeria

Fraud and Performance of Listed Deposit Money Banks in Nigeria: Exploring the Combined Effects of Fraud Triangle and Fraud Diamond Theories

The rate of increase in fraud cases and the attendant decline in performance of the Deposit Money Banks listed in Nigeria demand urgent examination into the phenomena. In order to appreciate the probable nexus between fraud and performance of Deposit Money Bank in Nigeria, this scholarly work demonstrated the influence of fraud on the performance Deposit Money Bank in Nigeria. In doing this, the study used correlational and expo facto research design, utilizing secondary data pooled out from the Nigerian Deposit Insurance Commission (NDIC) and published financial reporting of the DMBs. The study targeted all the 29 DMBs (comprising of, 5 Merchant Banks and 2 Non-Interest Banks and 22 Commercial Banks) as at 2019 as published by NDIC for ten years period of (2010-2019). Multiple regression methods was deployed to calculate approximately the model of the work. Results from the study demonstrated that fraud triangle and diamond theories (measured by expected loss from loss from fraud, number of fraud cases and staff participation in deception scheme) have negative and significant effect on performance (measured by ROA) of DMBs in Nigeria. Flowing from the result, this scholarly work has suggested that DMBs have a duty to put in place effective and efficient internal control procedures and establishment of workable fraud unit or department that is saddled with the responsibility of detecting and scrutinizing operational activities that may possibly be prone to fraud. In this way, bank assets would be safe-guarded and, consequently enhanced performance.