Deposit Money Banks Research Articles

Information Communication Technology and Organizational Performance of Selected Money Deposit Banks in Anambra State

The study investigated information communication technology and organizational performance of selected Money Deposit Banks in Anambra State. The specific objectives of the study were to: determine the effect of decision support system and organizational performance of selected money deposit banks in Anambra State, and ascertain the effect of office automation system and organizational performance of selected money deposit banks in Anambra State. Two research questions and two research hypotheses were formulated in line with the specific objective. The study was anchored on Contingency theory of Fred Fiedler. The population used for the study was four thousand two hundred (4200) staff of selected money deposit banks in Anambra State. The sample size for this study was determined by Godden’s (2004) formula. Five hundred and twenty-five (525) staff were selected as the sample for the study. The hypotheses were tested using multiple regression analyses and the result shows that decision support system has no significant positive effect on the performance of selected money deposit banks, and office automation system has no significant positive effect on the performance of selected money deposit banks in Anambra State. The study recommended that to raise the performance of these banks, bank owners should invest more in ICT and its component because they have proven to significantly influence organizational performance. Also, that bank should invest in ICT innovations to build capacity to design specialized products to serve all corners of the market. It concluded that the introduction of innovative products and services like office automation and decision process does not just attract new customers but also improves customer retention and loyalty.

Impact Of Agricultural Loans by Deposit Money Banks on Agricultural Output In Nigeria

This study examines the impact of agricultural loan by deposit money bank credit on agricultural output in FCT Abuja, Nigeria. The study employed the Demand-following theory to explain the relationship between agricultural loan applicant access to deposit money bank credit and agricultural output. A sample of 295 (5 Agricultural loan desk officer from the five selected banks and 200 agricultural loan applicants) respondents were sampled using Multistage Cluster sampling technique. Data were analysed using descriptive statistic (mean Score) and logit regression analysis for inferential statistics. The results show that agricultural loan applicants' access to bank credit for deposits has a large direct impact on Nigerian agriculture. Based on the outcome of data analysis, the study recommends that the Apex bank should direct the deposit money banks to make credits available for agricultural loan applicants and upsurge the agricultural credits monetary base to farmers. This can be done by expanding and encouraging more farmers and also increasing the sum allotted to individual/cooperative units.

Earnings Announcement and Stock Prices of Quoted Deposit Money Banks in Nigeria in the Era of COVID-19 Pandemic

ABSTRACT: The study examined the effectiveness of the signaling theory and the efficient market hypothesis in Nigeria during the period of the COVID-19 pandemic which has been an underexplored investigation in the Nigerian capital market. The broad objective of the study was to assess how earning announcements could affect the stock prices of deposit money banks in Nigeria. Specifically, the study sought to analyse the trend of stock prices and examine the reactions of stock prices of quoted DMBs to earnings announcements during a pandemic period in Nigeria. The study employed secondary data from daily closing stock prices of 13 selected banks and the All Share Index (ASI) between 2019 and 2020, sourced from the Nigerian Stock Exchange. The Log-in model, Event-study methodology and the Augmented Dickey-Fuller (ADF) test were used to analyse the data. The event-study methodology employed the market model to estimate the expected returns and abnormal returns during the event window. For the weak form of the market efficiency test, ADF was used to test for the presence of unit roots in the time series. Findings from the study showed that 69.23% of banks' stocks in the Nigerian capital market had negative growth, while 30.77% had positive growth during the period. That abnormal returns around announcement days were not statistically significant as abnormal returns of banks that announced an increase or decrease in earnings were -0.01007 (-0.00533) with t-stat values of -0.30355 (-0.16428) respectively. The implication of the findings is that investors could not earn cumulative abnormal returns during the event window and the abnormal returns of most of the banks had an inverse relationship with earnings announcements. Based on these findings, the study recommended, amongst others, that investors should avoid mispriced stocks while investing in index funds in order to earn market average returns and that regulatory authorities should monitor banks listed on the Nigerian stock exchange to guard against abuse of insider information to the detriment of investors.

The Impact of Internal Control Measures on the Detection and Prevention of Fraud in Banks (A Case Study of Fifteen (15) Selected Deposit Money Banks in Nigeria)

This paper explores the impact of internal control measures on the detection and prevention of fraud in Banks. Primary data were used for this study. This study was carried out by collecting data from 15 quoted Deposit money banks in Nigeria as at March, 2022. The model of used for the study was least square regression. It was observed that strong internal control system, good corporate governance, and compliance with banking ethics have positive and significant influence on fraud prevention in banking industry. This indicates that a commitment in the implementation of the variables of this study will reduce fraud, errors and misappropriations in banking sector. The study recommended that banking institutions should establish and ensure effective and strict implementation of all these variables which is strong enough to prevent fraud, errors and misappropriations.

Effects of asset-liability structure on financial survival of selected deposit money banks in Nigeria

Effects of asset-liability structure on financial survival of selected deposit money banks in Nigeria

Effects of asset-liability structure on financial survival of selected deposit money banks in Nigeria

Effects of asset-liability structure on financial survival of selected deposit money banks in Nigeria

Building Effective Marketing Partners: a Tactical Tool to Achieve Customer Retention in the Face of Strong Competitors

There is a lot of competition and constant shifting of customers in today's business environment. This study, therefore, examined the impact of marketing partners (supplier, distribution, dealer, agencies and customer networking) on customer retention. A descriptive survey research method was used, and data were collected from 356 respondents in the selected deposit money banks. Multiple regression analysis was employed to analyse the formulated hypothesis. The findings showed (R2=0.713, F-test=173.999, p < 0.05), the hypothesis was statistically significant at 5% level of significance, indicating that effective marketing partners demonstrated to be a tactical tool to achieve customer retention. The findings highlight the importance of building and maintaining cordial relationships with marketing partners to enhance customer retention in the banking industry. The study recommended that banks adjust their marketing initiatives and product offers to improve customer retention by being aware of the demands and preferences of their customers.

Improving organizational performance through performance management in selected deposit money banks in South-South, Nigeria

The study focuses on the effect of performance management system on organizational performance in the selected Nigeria Deposit Money Banks in South-South, Nigeria. The population of the study consists of customers and employee of Zenith Bank, Fidelity Bank, United Bank of Africa, Access Bank and First Bank in Delta State. The basis for selection of these five (5) banks from the twenty-four (24) DBMs in Nigeria is because they are key players in the industry. Therefore, the total population is 1740 which consists of the customers and the employees. The stratified random technique was utilized with the probability sampling method. The study concluded that performance appraisal affects organizational performance. Effective employee participation in performance appraisal is to understand the strategy the organization is trying to implement, timely communication of performance targets, timely feedback on progress towards set goals and employee full participation in setting goals. The study recommends that management should improve in justice perception; this is due to improve the commitment of non-executive employees towards the organization. Improving the justice perception can be made by improving the delivery of the information in terms of clarity, understanding and timely relevant.

Effect of Corporate Governance Mechanisms on Going Concern Likelihood of Listed Deposit Money Banks in Nigeria

Effect of Corporate Governance Mechanisms on Going Concern Likelihood of Listed Deposit Money Banks in Nigeria

Naira Digitalization and Financial Stability of Selected Deposit Money Bank in Nigeria: Are Nigeria Bank Ready?

Naira Digitalization and Financial Stability of Selected Deposit Money Bank in Nigeria: Are Nigeria Bank Ready?

Effect of earnings quality on efficiency of quoted deposit money banks in Nigeria

An unqualified information on the quality of earnings of a corporate organization provides assurances of realistic expectation of its future earnings. It also serves as a tool for negotiations and valuation deals in mergers, takeovers and acquisition. The aim of this study was to find out effect of earnings quality on the efficiency of deposit money banks in Nigeria. The study employed secondary data from selected nine (9) listed deposit money banks (DMBs) with international operations authorization for ten years period spanning 2011 – 2020. Panel regression approach was adopted for the study as the data obtained was cross-sectional (i.e. Panel) such that the behavior of variables were observed over time with specific efficiency test scores derived by conducting data envelopment analysis (DEA) to decompose the model. The result of the analysis shows that there is a significant positive relationship between quality of earnings and the efficiency of Deposit Money Banks in Nigeria. The study therefore establishes that Bank earning quality is significant in predicting the efficiency and sustainability of Deposit Money Banks and therefore recommends strict ethical adherence to provisions of accounting standards with internal control monitoring safeguards mechanism for management to ensure sustainability and secured going concern.

Signaling Channels of Financial Service Digitalization for Financial Inclusion in Nigeria

Drawing support from the technology diffusion theory and technology acceptance model, this study examined how financial service digitalization contributed to the process of financial inclusion in Nigeria. Three financial technologies, POS, ATM, and web payment services, were selected based on their dominance and availability to numerous bank customers in various locations, including rural areas. On the other hand, financial inclusion was measured by access to financial services, with a focus on the number of bank branches across Nigeria. An ex -post facto research design was followed with the application of the autoregressive distributed lag (ARDL) model to analyse the quarterly data obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin. The findings showed that the POS and web payment services increased access to financial services and, in so doing, reduced the number of bank branches. This finding suggests that the availability of POS and web payment services is a prerequisite for financial inclusion while abridging the cost of banking transactions. In addition, it was found that ATM service is significant in promoting access to financial services. The implication of this finding is that increased availability of ATM service is associated with an increase in the number of bank branches, as most banks tend to situate their ATM galleries in their various branches for security and cost-effectiveness. In light of the findings, it is concluded that ATM technology is the most outstanding channel of finance service digitalization for financial inclusion in Nigeria. Thus, it is recommended that deposit money banks prioritise the provision of financial technology, especially ATMs, while scaling up their operational efficiency to create more opportunities for financial inclusion in Nigeria

EFFECT OF RISK COMPONENTS ON OPERATIONAL EFFICIENCY OF DEPOSIT MONEY BANKS IN NIGERIA A STUDY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

The main objective of this study is to examine effect of risk components on operational efficiency of Deposit Money Banks in Nigeria. The data to be used for the study will be extracted from secondary sources only. The data will be panel data which will be subjected to time and cross-sectional attributes and this will enable us to study innovation and performance of firms over time and as well as across the sampled quoted banks. The findings of the study revealed that credit risk increases the operational efficiency of Deposit money Banks. Also, the study found that liquidity risk has negative and significant effect on operational efficiency. The result also found that capital adequacy has positive and significant effect on operational efficiency. The study recommended that the management of the Deposit Money Banks should device viable measurement for evaluating the risk components confronting the banking operation and not to rely on the bank model with an assumption that that risk is incorporated into bank output without explicitly modeling its role in explaining inefficiency. This is because failure to account for risk-taking may lead to biased estimations of bank efficiency and misleading estimates of scale economies and cost elasticities.

Tax Variances and Financial Performance of Deposit Money Banks Multinational Companies in Nigeria

The study examined the effect of tax variance and financial performance of deposit money banks multinational companies in Nigeria. It specifically examined the effect of book tax difference on return of asset of deposit money banks, it also examined the effect of effective tax rate on return of asset of deposit money banks in Nigeria .Ex-post facto research design was employed through secondary data to establish the relationship between dependent variable (Return on Asset) and independent variables (Book tax differences and effective tax rate) The population of this study covers all the 14 deposit money banks listed on the Nigeria Exchange Group as at 31 st December, 2020. The study used census sampling to cover all the 14 deposit money banks. Data on all the explained and explanatory variables were extracted from the published financial statements of the 14 deposit money banks for the period of 2006-2020 with 90 observations. Data were analyzed using Panel data which consist on correlation, multiple regression were used to analyze the data. The study found that book tax difference has positive and significant effect on return on asset of deposit money banks while effective tax rate was negative and insignificant on return of asset of listed deposit money banks. Consequent on the findings, the study concluded that tax variance has significant effect on financial performance of listed deposit money banks in Nigeria. The study recommends amongst others that policy makers, accounting standards developers and industry regulators can utilize the study findings to develop an insight on industry effect of book tax difference for ease of bankruptcy prediction from financing cash flow deficiency.

Creative Accounting Practices and Shareholders Wealth: Evidence from Deposit Money Banks in Nigeria

The study investigated the relationship between creative accounting practices and shareholder’s wealth of deposit money banks (DMBs) in Nigeria within the period of 2008-2020. Its specific objectives were to investigate the relationship between the Income smoothing and return on equity, and Inventory manipulation and return on equity of DMBs in Nigeria. The cross- sectional survey research design was adopted for the study; the population of the study was all the 14 DMBs listed in Nigerian Exchange as at December 2021. Using purposive sampling technique, 5 deposit money banks were sampled and 74 respondents comprising accountants, auditors and compliance officers across the selected DMBs were used. 64 adequately completed and returned copies of questionnaire was used for the study analysis. Copies of questionnaire was used for data gathering. Univariate and Bivariate analysis was done. Regression analysis and model Statistics was used for data analysis and testing of hypothesis with the aid of SPSS. The result of the study shows that creative accounting dimensions of income smoothing and inventory manipulation have strong, positive and significant relationship with shareholder’s wealth measured in terms of return on equity (ROE). The study concluded that creative accounting affects shareholder’s wealth thus the need to checkmate the practice so that shareholders would actually know the true worth of their investment, not that which is coated that ends up giving them false hope in the long run. The study recommended that: Bank regulators should evaluate the adequacy of policies around inventory and assets valuation and at the same time, financial analysts and shareholders should note the application and consistency of accounting policies on inventory and assets. This way where inventory records have been manipulated can be discovered. There should be a review of the ownership structure of banks. There should be more dispersed ownership to include

Bank capital, earnings smoothing and provisioning practices in Nigeria: IFRS and risk evidence

PurposeThis study empirically tests the use of loan loss provisions (LLPs) for earnings and capital smoothing when emphasis is laid on banks' riskiness and adoption of the International Financial Reporting Standards (IFRSs) in Nigeria.Design/methodology/approachAnnual bank-level data are hand-extracted between 2007 and 2017 from annual reports of a sample 16 deposit money banks (DMBs), and analysed using appropriate panel regression models subsequent to a number of diagnostic tests including heteroscedasticity, autocorrelation and cross-sectional dependence. The use of both reported LLPs (TLLP) and discretionary LLPs (DLLP) for earnings and capital management is tested to advance the practice in the literature.FindingsGenerally, the study finds that Nigerian DMBs manage capital via LLPs, while mixed results are obtained for earnings smoothing. However, during IFRS, Nigerian DMBs' management of capital is identifiable with TLLP, while smoothing of earnings is peculiar to DLLP. Additionally, evidence of the improvement in loan loss reporting quality expected during IFRS for riskier Nigerian DMBs, could not be attained. This is corroborated by the study's findings of the use of both TLLP and DLLP for earnings and capital management during IFRS by DMBs in solvency crisis against the only use of TLLP to manage capital found for the entire period.Practical implicationsThe evidential capital and earnings lopsidedness may subject Nigerian DMBs' going-concern to a lot of questions.Originality/valueThe study sets a foremost record in the empirical test of managerial opportunistic behaviour embedded in earnings and capital concurrently while accounting for loan losses by all categories of Nigerian DMBs in terms of riskiness, following accounting regime change.

Talent Management: Its Effect on the Competitive Advantage of Selected Money Deposit Banks in Ogun State, Nigeria

Financial institutions are constantly looking for new competitive advantages due to the intense competition in the banking sector. Financial institutions investing in Talent Management can better weather economic storms and respond to changing customer wants and needs. Furthermore, they have a better chance of attracting and retaining the most talented employees. Deposit-taking institutions have made significant progress in implementing Talent Management strategies. However, the outcome has not been as expected due to high human capital attrition in the banking industry and the fact that the best talents are in high demand and can be expensive to acquire. A survey research design was used for the study. The study included 134 employees from various money deposit banks. The study used a simple random sampling method. For data collection, a well-structured and validated questionnaire was used. The response rate was 69%, and the information gathered was analyzed using descriptive and inferential statistics. According to the findings, Talent Management has a positive and significant effect on the competitive advantage of selected money deposit banks in Ogun State (AdjR2 = 0. 573, F(3, 91) = 39.337, P 0.05). The study recommends that deposit money banks identify, acquire, develop, and retain a competent workforce to improve job performance and competitive advantage.

Impact of Monetary Policy on Financial Risks in Nigerian Banking Industry

The study examines how monetary policy affects financial risks in the Nigerian banking sector. The study's goal is to demonstrate the monetary policy's major influence and significance on credit risk, market risk, and operational risk. The study was conducted as a result of the issue that monetary policy would just raise market volatility and undermine its own credibility. The market would not contribute in any way to the successful implementation of monetary policy or the pursuit of price stability. The outlook for the economy and cost extensive have drawbacks. Hence, the direction of financial stability and price stability actions normally go in the same direction and contention between both branches is rather questionable. The study adopted a quantitative method research design only since the variables can be measured and quantified. The population of the study consisted of 24 deposit money banks in Nigeria. Secondary data were obtained from annual reports and statements of accounts of six banks. The sampled banks were selected using judgemental sampling techniques. The financial statement was analysed through Ordinary Least Square (OLS) regression analysis facilitated by applying Econometric views (Eviews). The reports were made based on the results of the tables. The finding revealed that monetary policy significantly impacts non-performing loans, equity prices and the number of employees. The study recommends that further research should be carried out using other banking sectors, such as microfinance and companies.

Innovation Diffusion and Sustainable Development of Deposit Money Banks in South-South Nigeria: The Moderating Role of Entrepreneurial Marketing

Many deposit money banks in Nigeria are utilizing new technologies to innovate their products and services. But amidst these wins are some legitimate concerns about the credibility of the banks, customer trust, banks’ technical competence, capability to adopt innovations and the ability to sustain development. Framed by the diffusion of innovation (DOI) theory, this study explored the relationship between innovation diffusion and sustainable development of deposit money banks in Nigeria and the moderating role of entrepreneurial marketing. A quantitative and cross-sectional survey research design was adopted to consider three (3) hypotheses formulated for the study. Based on a population size of twenty-two (22) deposit money banks in south-south Nigeria, (Nigeria Deposit Insurance Corporation (NDIC), 2022), two (2) respondents; branch managers and marketing managers were drawn randomly from each of the banks for the survey. Therefore, forty-four (44) copies of questionnaire representing the total respondents were suitably designed and administered to obtain primary data. The face validity of the questionnaire was determined by experts comprising of researchers and business practitioners with satisfactory knowledge of the subject matter. The construct and content validity were established from earlier researchers who used it, but with few adjustments. The Cronbach's Alpha Coefficient reliability measure was also applied to determine the internal consistency of items in the questionnaire using Statistical Package for Social Sciences (SPSS). The Pearson moment correlation coefficient was used to determine the degree of relationship between the dimensions of innovation diffusion (product innovation diffusion and process innovation diffusion) and sustainable development. Partial correlation was used to examine moderation of entrepreneurial marketing on the relationship between innovation diffusion and sustainable development. Findings reveal that inn

A Test of Agency Theory of Divided Relevance on the Firm Value of Listed Nigerian Deposit Money Bank

The main objective of this study is the agency theory of dividend relevance on the firm value of listed Nigerian deposit money banks (DMBs) for ten years, 2011–2020. The study used an ex-post facto panel research design. The data for the study was collected from the published financial statements of sampled banks. The study's dependent variable is market capitalization, a proxy of firm value, while the independent variables are dividend payout and agency cost, respectively. The data estimation was conducted using the panel data technique. The findings showed that the dividend payout and agency cost effects on firm value are positive and negative but statistically significant and insignificant. In contrast, the joint effects of dividend payout and agency cost on a firm's value are statistically insignificant. This result implies that dividend payout has a unique effect (direct effect) on firm value but does not moderate the effect of agency cost on firm value in Nigerian DMBs. This can be attributed to the unique nature of banks, which may be due to the intense supervision by the regulatory authorities.
 Keywords: Agency cost, market capitalization, firm value, direct effect, dividend payout