Corporate Governance and Financial Stability of Nigeria Quoted Deposit Money Banks (Published)
The development in corporate governance and the practice play important role in developing and enhancing the global economy, business firms and improving financial stability of deposit money banks. The rising of non-performing loans, decline in asset quality, credit concentration and high foreign exchange exposure and volatility have led to financial instability and financial distress in deposit money banks in Nigeria. The study examined the effect of corporate governance on the financial stability of deposit money banks in Nigeria. Ex-post facto research design was adopted for the study. The population of the study comprised the 21 listed deposit banks on the Nigerian stock exchange as at September 2016. The study made use of a total of 10 banks as sample size which was categorized under the listed deposit money banks in Nigeria. These banks were selected using stratified sampling technique. Data were collected from the annual reports for the period of ten years (2007-2016). Descriptive Statistics test were carried out, hausman test and cross-section random effect test were analyzed. The analysis revealed that all corporate governance variables have a positive and negative effect on capital adequacy at Adj.R2 = 0.052 and F test score of 2.832, capital structure at Adj.R2 = 0.088 and F test score of 4.187, and liquidity at Adj.R2 = 0.004 and F test score of 1.149. Corporate governance has a positive and negative effect on financial stability with P-value of F statistics at 0.000 and Adjusted R2 = 12.9%. The study concluded that corporate governance has a significant effect on financial stability. This means that as the content of corporate governance improves financial stability increases. The study recommended that to increase financial stability, management should focus on ensuring that there is effective corporate governance in the organization.
Keywords: Corporate Governance, Volatility, capital adequacy, capital structure and liquidity, financial stability
Risk Management, Risk Concentration and the Performance of Deposit Money Banks in Nigeria (Published)
This study investigated the effect of risk management and risk concentration on the performance of Deposit Money banks in Nigeria for the period 1997 to 2016. The study adopted credit risk, liquidity risk and capital adequacy risk as proxies for risk management/concentration, and return on assets as the measure for performance of Deposit Money banks. Secondary data was collected from the annual financial statements of listed banks and the Nigerian Stock Exchange fact book. The study employed multiple regression technique based on the E-views 7 software for analysis of data. The results of the analysis indicated that credit risk and liquidity risk had positive and significant effect on return on asset, while capital adequacy risk had negative and insignificant effect on return on asset. The study concluded that risk management/concentration affected the performance of banks in Nigeria. Based on the findings, the study recommended that the management of banks should establish sound lending policies, adequate credit administration procedure, and effective and efficient machinery to monitor the lending function in line with established guidelines. Also, the character and financial statement of the borrower must be properly scrutinized and a careful evaluation of the customer’s credit worthiness be carried out before extending loan facilities to potential borrowers.
Keywords: Credit, Liquidity, Performance, Returns on Assets, Risk Management, capital adequacy
Determinants of Profitability in Commercial Banks Of Indonesia an Empirical Study (Published)
This study aims to determine the factors that affect the profitability of commercial banks in Indonesia. This research is a quantitative research using a sample six largest banks with total assets under ICMD. The banks included in the sample in this study is that Bank Mandiri (Persero) Tbk., Bank Rakyat Indonesia (Persero) Tbk., Bank Central Asia Tbk., Bank Negara Indonesia (Persero) Tbk., Bank Danamon Indonesia Tbk., and Bank Pan Indonesia Tbk. The research data in the form of panel data obtained from the annual financial statements of the bank. Techniques using multiple linear regression analysis. The results showed that the variables of liquidity of banks, non-performing loans and capital adequacy simultaneously affect the bank’s profitability. The partial effect of liquidity and non-performing loans significantly influence the profitability of banks. While the capital adequacy ratio of no significant impact on the profitability of commercial banks in Indonesia
Keywords: Liquidity, NPL, Profitability, capital adequacy