European Journal of Business and Innovation Research (EJBIR)

EA Journals

Profitability

THE ERA OF POST-CONSOLIDATION AND BANKS’ PROFITABILITY IN NIGERIA (2000- 2013): A MULTIVARIATE CO-INTEGRATION ANALYSIS (Review Completed - Accepted)

The paper examined the relationship between the era of post-consolidation and banks’ profitability in Nigeria using data spanning (2000-2013). Secondary data was collected from the CBN statistical and economic and financial review bulletins. Hypotheses were formulated and tested using error correction model (ECM) and the study reveals that the variables are stationary and integrated of order at various levels. There is also long-run equilibrium relationship between the era of post-consolidation and banks’ profitability in Nigeria and the result confirms that about 62% short-run adjustment speed from long-run disequilibrium. The coefficient of determination indicates that about 27% of the variations in banks’ profitability are explained by changes in the era of post-consolidation variables. The study therefore recommends that bank management should strengthen their supervising units in credit administration to avoid the issue of non-performing load. For Nigeria banks to be a major player in domestic and international market, banks capital should be above minimum regulatory requirements at all times. Shareholders’ funds and total assets of banks should be periodically evaluated and aggregate marketing should be vigorously intensified by the banks

Keywords: Banks’, Era, Nigeria, Post-Consolidation, Profitability

The Effect of Product Differentiation on Profitability in the Petroleum Industry of Ghana (Published)

Firms differentiate their products to avoid ruinous price competition, but performance depends crucially on the degree of location. A company’s physical product offering may be highly differentiated on features not provided by competitors in the same industry, some also differentiate their product on performance with basis on power, professional credibility etc. This research comprises 15 oil marketing companies in Ghana, which is made up of one government owned and 14 privately owned. The population is homogeneous in nature, due to the homogeneity of the population; a cluster sampling technique is used to select just a company out of the population. This selected company is Total Ghana Company. Members were selected using a non probability sampling technique specifically the purposive sampling technique. A total of 30 members were selected and administered with Questionnaires whiles others were also interviewed. The main variables of interest are product differentiation, profitability and patronage of Effimax.

Keywords: Effimax, Industry, Petroleum, Product Differentiation, Profitability

An Empirical Evidence on impact of Credit Management, Liquidity Position and Profitability of Nigerian Banking Sector (Review Completed - Accepted)

The study critically examines the relationship between credit management, liquidity position and profitability of some selected banks in Nigeria using annual data of ten banks over the period of 2006 to 2010. Time series properties of all variables used in the estimation were examined through Augmented Dickey Fuller (ADF) test in order to obtain reliable results. It shows that all the variables were stationary and significant at first differences. The results from Ordinary Least Square (OLS) estimate found that current ratio is positively related to debt ratio and significant at 1% level. This confirms the alternative “risk absorption” hypothesis, which stipulates that efficient credit management enhances firms’ ability to create liquidity. In addition, the result shows that ROA has significant positive effect on current ratio confirming the “financial fragility – crowding out” hypothesis which stipulate that the ability of firms’ to maintain certain degree of liquidity reduces firms’ profitability enhancement. This conclusion has important policy implications for emerging countries like Nigeria as it suggests that when a company’s credit policy is favourable, liquidity is at a desirable level and lastly, the findings revealed that companies should ensure the monitoring and regular review of their credit policy and the allowance of cash discounts should be minimized as much as possible.

Keywords: Commercial Bank, Credit Management, Liquidity Position, Profitability, Regression

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