Financial Innovation and Financial Performance of Nigerian Listed Deposit Money Banks: Evidence from Panel Data Modeling (Published)
This study examined the impact of financial innovation on the financial performance of Deposit Money Banks (DMBs) in Nigeria, utilizing secondary data from 2008 to 2023. This data was sourced from the banks’ annual financial statements and the Nigerian Exchange Group Factbook. Nine banks with international authorization were purposively selected for the study. Financial innovations in the banking sector include automated teller machines (ATMs), point of sale (POS) terminals, internet banking (WEB), and mobile money payments (MOB) transactions, while return on assets (ROA) and return on equity (ROE) were used as measures of bank financial performance. Panel data models were designed and estimated using the Feasible Generalized Least Squares (FGLS) regression technique. The findings indicated that financial innovations positively influenced the banks’ financial performance. However, while ATM and POS transactions significantly impacted the banks’ ROA and ROE, WEB and MOB transactions had no significant impact on the financial performance of the deposit money banks.
Keywords: Deposit Money Banks, Financial Innovation, Nigeria, Return on Asset, Return on Equity, panel data modeling
Foreign Exchange Income and Financial Performance of Deposit Money Banks in Nigeria (Published)
The study examined the effect of foreign exchange income on financial performance of deposit money banks in Nigeria. The specific objectives of the study were to ascertain the effect of nominal exchange rate, real exchange rate, and exchange rate on return on asset of deposit money banks in Nigeria. nominal exchange rate, real exchange rate, and exchange rate were the independent variables, while return on asset was the dependent variable. The study adopted an ex-post-facto research design, covering the period between 2011 and 2020. Secondary data were extracted from the annual reports and accounts of sampled deposit money banks in Nigeria. Multiple regression techniques were used for test of hypotheses. From the data analysis, it was revealed that nominal exchange rate has a significant negative effect on return on asset of deposit money banks in Nigeria. real exchange rates have a significant positive effect on return on asset of deposit money banks in Nigeria. However, exchange rate has a nonsignificant negative effect on return on asset of deposit money banks in Nigeria. This implies that among the foreign exchange income variables, nominal exchange rate and real exchange rate can be used to predict return on asset of deposit money banks in Nigeria. The study, therefore, recommends that federal money the sources of deficit financing. They should reduce their public debt so as to allow foreigners invest in securities with naira denomination. They should reduce the extent the deplete our foreign exchange reserve because such moves increase the exchange rate, which affects banks performance negatively. The central bank of Nigeria and the ministry of finance should reduce the rate they give out dollars to politicians because it affects our exchange rate and banks’ performance negatively.
Keywords: Deposit Money Banks, Exchange Rate, Nominal exchange rate, Real Exchange Rate, Return on Asset
Effect of Credit Risk Management on Financial Performance of Commercial Banks in (Published)
The main purpose of this study is to investigate the effect of credit risk on the financial performance of commercial banks in Nepal. The balance panel data of ten commercial banks with 160 observations for the period of 2001 to 2016 have been used for the analysis. The regression results revealed that capital adequacy ratio (CAR), non-performing loan ratio (NPLR), and management quality ratio (MQR) have significant relationship with the financial performance (ROA) of the commercial banks in Nepal. Similarly, credit to deposit ratio (CDR) and risk sensitivity (RS) have no significant impact on the financial performance of the commercial banks in Nepal.
Keywords: Capital Adequacy Ratio, Management, Return on Asset, and quality ratio, credit to deposit ratio and risk sensitivity, non-performing loan ratio
Sector-wise Effect of Solvency on Profitability: Evidence from Jordanian Context (Review Completed - Accepted)
This study is conducted to investigate the effect of solvency on profitability among Jordanian Industrial sectors. As far as this study is concerned solvency which expressed by debt ratio (DEBT), and equity ratio (EQUITY), and the profitability which expressed by variables including earnings before interest and tax (EBIT), net profit margin (NPM), return on asset (ROA), and return on equity (ROE), and. For the analysis the multiple regressions cover a period 2008-2011, used to examine the effect of solvency on profitability among sectors. The study found that table the Mining and Extraction sector has the highest earnings before interest and tax (EBIT) while the lowest the Glass and Ceramic Industries. The Mining and Extraction sector has the highest Net Profit Margin (NPM), return on asset (ROA); return on equity (ROE) while the lowest the Glass and Ceramic Industries. Also table the Electrical Industries sector has the highest debit ratio (DEBT) while the lowest the Glass and Ceramic Industries. But The Glass and Ceramic Industries have the highest equity ratio (EQUITY) and the lowest equity ratio (EQUITY) for the Electrical Industries sector.
The study revealed that solvency has a significant relationship with earnings before interest and tax (EBIT), net profit margin (NPM), return on asset (ROA), and return on equity (ROE), because the test was at level 5%.
Keywords: Amman Stock Exchange (ASE), Debt Ratio, Earning before Interest and Tax, Equity Ratio, Net Profit Margin, Profitability, Return on Asset, Return on Equity, Solvency