Impact of CBN Cash Reserves Requirement on the Financial Performance of Deposit Money Banks in Nigeria (Published)
This study investigates the impact of the Central Bank of Nigeria’s (CBN) Cash Reserve Requirement (CRR) on the financial performance of Deposit Money Banks (DMBs) in Nigeria, focusing on Return on Assets (ROA), Return on Equity (ROE), Liquidity Rate (LR), and Loan-to-Deposit Ratio (LDR). Anchored in Monetary Theory and Resource Dependence Theory, the study employs an ex-post facto research design and utilizes secondary data from 2018 to 2023. Descriptive statistics, correlation analysis, and simple regression analysis were applied to examine the relationships between CRR and the performance metrics. Findings reveal that CRR significantly influences all four metrics, demonstrating a strong positive relationship with ROA, ROE, LR, and LDR. These results highlight the dual role of CRR in promoting financial stability and influencing operational strategies in the banking sector. The study concludes that while CRR enhances regulatory compliance and liquidity, it also imposes constraints on lending and profitability, necessitating adaptive strategies by banks. Policymakers are advised to balance CRR adjustments to optimize liquidity control and profitability, ensuring alignment with Nigeria’s economic development goals.
Keywords: Deposit Money Banks, Financial Performance, Loan to Deposit Ratio, Return on Assets, Return on Equity, cash reserve requirement, liquidity rate
Corporate Social Responsibility Expenditures on Financial Performance of Zenith Bank Nigeria PLC (Published)
The study explores the influence of CRS expenditure on the financial performance of Zenith Bank PLC in Nigeria between 2015 and 2024. There has been increased pressure for corporate social responsibility activities from various stakeholders and this has made it more relevant for banks to engage in such activities. Nevertheless, the Nigerian banks’ context remains unfamiliar with the link between CSR and financial performance, hence limiting the strategic relevance of these expenses. This qualitative study uses secondary data from financial statement of Zenith Bank for the years 2015 to 2024 sourced from the Central Bank of Nigeria. Linear regression analysis, with the aids of SPSS 28, were conducted with the aim of establishing the association of the CSR during all the three financial performance aspects, namely, the annual gross income, the annual taxable income, as well as the annual market value per share. The findings indicate the existence of positive and significant relationships that are noteworthy for all the variables on performance respectively. The linear regression analysis indicates that infrastructure directs 65.2% of the variation in the market value of the shares of 8.3% (R² = 0.652; p = 0.005), 47.0% of the variance in the annual before tax profits of Zenith bank Plc (R² = 0.470; p = 0.029), and 41.7% of the variance in annual revenues (R² = 0.417; p = 0.044). All the aforementioned relationships were statistically significant with 95% confidence limit, with the maximum effect observed for market value per share, follow by profit before tax, and least for gross revenue. The study therefore recommends, among others, that Zenith bank should invest in CRS activities that increase the awareness of the brand or company and confidence credentials of the key stakeholders.
Keywords: Corporate Social Responsibility, Financial Performance, corporate social responsibility expenditure, gross revenue, market value per share, profit before tax
Effect of Pension Fund Characteristics on Financial Performance of Pension Fund Administrators in Nigeria (Published)
This study examined the effect of pension fund characteristics on the financial performance of Pension Fund Administrators in Nigeria. It is necessitated by the limited empirical evidence on the specific factors influencing the financial performance pension fund administrators, given the growing importance of pension funds in Nigeria’s capital markets. Using an ex-post facto research design, the study analyzes data from 6 pension fund administrators selected from a population of 21, covering the period 2010 – 2024. The study employs correlation and multiple regression analyses to assess the relationships between corporate age, corporate expenditure, corporate revenue, investment growth, and financial performance, measured by Return on Capital Employed (ROCE). The findings reveal that corporate age, corporate revenue, and investment growth have significant positive effects on financial performance, while corporate expenditure exhibits a significant negative impact. The regressors of the study explain 86.8% of the variance in financial performance, indicating strong predictive power. These results suggest that older, more established pension fund administrators with robust revenue streams and effective investment strategies tend to perform better financially, whereas higher operational costs detract from performance. The study concludes that institutional experience, revenue generation, and investment expertise are critical drivers of financial success in Nigeria’s pension sector, while cost management remains a key challenge. Based on these findings, the study recommends that pension fund administrators should focus on optimizing revenue streams, enhancing investment frameworks, and implementing stringent cost-control measures. Regulatory authorities should also strengthen oversight mechanisms to ensure sustainable financial performance.
Keywords: Age, Expenditure, Financial Performance, Revenue, investment growth
Accounts Receivable Management and Financial Performance of Public Universities in Ghana (Published)
This study examines how accounts receivable management affects the financial performance of public universities in Ghana. Utilizing secondary data from 13 public universities over five years (2017–2021), the research employs descriptive statistics, correlation analysis, and regression models to evaluate key financial metrics, including Return on Assets (ROA), Current Ratio (CUR), Accounts Receivable Turnover (ART), and Accounts Receivable Period (ARP). Key findings indicate a moderate positive correlation between ROA and CUR, a strong positive correlation between ROA and ART, and a negative correlation between ARP and ROA, emphasizing the importance of timely collections. Additionally, larger universities tend to have better financial performance, as shown by the positive influence of university size on both ROA and CUR. The study concludes that while some universities manage finances effectively, significant variability highlights the need for improved practices. These insights are valuable for university administrators and policymakers aiming to enhance financial performance in Ghana’s higher education sector.
Keywords: Financial Performance, Liquidity, Return on Assets, accounts receivable management, accounts receivable period, accounts receivable turnover
Green Financing, Corporate governance and Financial Performance of Commercial Banks in Kenya: A Review of Literature (Published)
This research examines the interplay between green financing and the financial performance of commercial banks in Kenya, with a particular focus on the role of corporate governance as a moderating variable. Green financing refers to the investment of financial resources in projects that foster environmental sustainability. As concerns regarding environmental issues grow globally, financial institutions are progressively incorporating green financing into their operational frameworks. This study aims to assess the implications of such practices on the financial stability and competitive positioning of banks within the Kenyan market. Through a comprehensive review of scholarly articles, reports from the Kenya Bankers Association, and various working papers accessed via Google Scholar, the findings indicate a favorable relationship between green financing initiatives and enhanced financial performance. Furthermore, the analysis highlights a general agreement among numerous studies that corporate governance plays a mediating role in the relationship between green financing and the financial outcomes of commercial banks. These findings emphasize the critical significance of adopting sustainable banking practices to bolster profitability while simultaneously advancing environmental sustainability.
Keywords: Financial Performance, green financing, lending in commercial banks., sustainability financing
Moderating Role of Firm Size on Carbon Accounting and Financial Performance of Listed Firms in Nigeria (Published)
This study investigates corporate carbon accounting and financial performance of listed manufacturing firms in Nigeria. The study used quantitative research design and data were collected from primary and secondary sources. The primary data comprised of structured questionnaire from a sample of 312 accountants in listed manufacturing firms in Nigeria. Data collected from the respective respondents were analysed by applying structural equation modelling through the employment of SmartPLS version 4. The findings from the data analysis suggested a positive and insignificant relationship between scope of carbon emissions, emission sources, emission categories and emission factors positively and insignificantly impact on return on assets of listed manufacturing firms in Nigeria. Also reporting boundaries and firm size negatively and insignificantly influence return on assets. On the basis of the findings, the study concluded that carbon emission accounting influences the financial performance of listed manufacturing firms in Nigeria. Hence, the study recommended amongst others that managers of listed manufacturing firms should consider carbon mitigation strategies seriously since carbon emissions negatively influence shareholder value. This means that managers can enhance shareholders’ value by undertaking emission abatement policies to boost their financial and market performance.
Keywords: Carbon Accounting, Emission Sources and Factors, Financial Performance
Influence of Non-Performing Loans, Lending rate and Financial Performance of Commercial Banks in Kenya. A Review of the Literature (Published)
This study examined the impact of non-performing loans on the financial performance of publicly listed commercial banks in Kenya, focusing on the bank lending rate as a mediating variable. It analyzed the relationship between non-performing loans and banks’ return on assets (ROA) and return on equity (ROE) through a review of empirical literature from Google Scholar and the Central Bank of Kenya reports. Studies show mixed results on the relationship between non-performing loans (NPLs) and bank performance. Previous studies have highlighted an inverse relationship between non-performing loans and return on assets (ROA), as noted by Siddique et al. (2022) and others. On the other hand, Mrindoko et al. (2020) discovered a negligible negative correlation with return on assets. Generally, the literature suggests an inverse relationship between NPLs and bank performance, emphasizing a diversified loan portfolio for improved profitability. Researchers have noted connections between NPLs and lending rates (Case et al., 2023; Rahmananingtyas, 2022; Koskei & Samoei, 2024), as well as between lending rates and bank performance (Hania & Himel, 2023; Dondi & Mule, 2023). This hypothesis suggests that lending rates play a mediating role in the relationship between non-performing loans (NPLs) and the financial performance of commercial banks in Kenya, highlighting the need for additional empirical research in this area.
Keywords: Financial Performance, Lending Rate, Non-Performing Loans, Return on Assets, Return on Equity
Current Liabilities and Financial Performance of Healthcare Firms in Nigeria (Published)
The study evaluated the relationship between current liabilities and financial performance of healthcare firms in Nigeria. The specific objectives of the study are to assess the effect of Trade Payables, Current Tax Liabilities and Short-Term Borrowings on Return on Assets of Healthcare firms in Nigeria. Ex post facto research design was adopted. Data were collected from annual reports and accounts of sampled firms within the industry to test the null hypotheses that selected current liabilities do not affect return on assets significantly. Correlational analysis was the tool of analysis using panel data set covering Fifty (50) observations from Five (5) firms in the Healthcare sector. The findings revealed that Trade Payables (TP) have weak but significant positive relationship with Return on Assets of Healthcare firms in Nigeria with a correlation coefficient of 0.524514 and a p-value of 0.0001. Current Tax Liabilities have weak but significant positive relationship with Return on Assets of Healthcare firms in Nigeria with a correlation coefficient of 0.539686 and a p-value of 0.0001. Short-Term Borrowings have weak but significant positive association with Return on Assets of Healthcare firms in Nigeria with a correlation coefficient of 0.538232 and a p-value of 0.0001. The implication of the findings is that current liabilities such as trade payables, current tax liabilities and short-term borrowings are significant positive determinants of financial performance of healthcare firms in Nigeria. The study therefore concluded that while the observed relationships were statistically significant, the weak correlations suggest that other factors not examined in this study may have stronger association with return on assets of healthcare firms. The study recommends that effective management of trade payables and current tax liabilities is essential for healthcare firms to successfully navigate the tedious regulatory requirements and enhance financial performance. Furthermore, strategic utilization of short-term borrowings would provide healthcare firms with the necessary financial flexibility to support growth initiatives and address short-term funding needs.
Keywords: Current liabilities, Financial Performance, Nigeria, current tax liabilities, healthcare firms, return on assets (ROA), short-term borrowings, trade payables
Environmental Accounting and Financial Performance of Conoil Plc in Nigeria (Published)
This study investigated the relationship between environmental accounting and financial performance of Conoil. The ex-post facto research design was employed in this case study of the sampled oil gas giant in Nigeria due to its comprehensive disclosure of environmental expenditures in its annual reports. The study utilized secondary data obtained from annual reports and accounts, downloads from Nigerian Exchange Group (NXG), and the company websites covering the period 2008 to 2022. The study employed descriptive statistics, correlation analysis, and Ordinary Least Squares (OLS) regression using Eview9 econometric software for data analysis. The correlation analysis result indicates that environmental restoration costs (ERC) are negatively correlated with profit after tax (PAT) and return on assets (ROA), while a positive correlation exists between PAT and ROA, providing insights into Conoil Plc’s financial and environmental performance dynamics. The regression analyses reveal that while environmental restoration costs have a significant negative impact on return on assets (ROA), neither ERC nor health, safety, and environmental expenses (HSE) significantly influence profit after tax (PAT), indicating the nuanced relationship between environmental accounting metrics and financial performance in Conoil Plc’s operations. The research additionally recommended that the corporation should regularly carry out environmental audits to evaluate adherence to environmental rules and pinpoint opportunities for enhancing environmental performance. The company should allocate resources towards renewable energy projects to reduce reliance on fossil fuels, mitigate environmental impact, and enhance long-term financial sustainability.
Keywords: Financial Performance, Health, environmental restoration costs, safety and environmental expenses
Impact of Internal Control Challenges on Financial Performance of Local Government Councils of Nasarawa State (Published)
This research work examined the impact of internal control challenges on the financial performance of local government councils in Nasarawa State, Nigeria. The study employed a mixed-methods approach, combining qualitative and quantitative research methods. Qualitative data are gathered through interviews and focus group discussions with relevant stakeholders, including council officials, financial managers, auditors, and community representatives. Quantitative data are collected through surveys and analysis of financial reports and performance indicators. A structured close ended questionnaire was administered to 211 staff that forms the sample size. The study used the correlation coefficient to establish the relationship between internal control challenges and financial performance, while the multiple regression analysis was used to test all the hypotheses of the study at 0.05 level of significance. Result of the correlation indicates significant relation between internal Control and financial performance whereas the regression analysis found that internal control challenges have significant positive impact on financial performance of Local Government Councils in Nasarawa State. It concluded therefore that effective accountability and stable financial practices in Local Government Councils can only be achieved through a properly instituted internal control system with free or minimal challenges. It recommended that: functions and responsibilities within the local government councils are clearly defined and separated.
Keywords: Financial Performance, Internal control, Local Government, councils