DETERMINANTS OF FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Authors

  • Mary Seansu Lazarus Kaduna State University, Kaduna
  • Nuraddeen Usman Miko, PhD Kaduna State University, Kaduna
  • Saifulahi Abdullahi Mazadu Ph.D Kaduna State University, Kaduna

DOI:

https://doi.org/10.57233/gujaf.v3i3.185

Keywords:

Financial performance, deposit money banks (DMBs), capital adequacy (CA), cash flow (CF), operational efficiency OE), liquidity risk (LR), returns on assets (ROA)

Abstract

This paper seeks to address some factors influencing the financial performance of listed DMBs in Nigeria as the industry has a crucial role to the growth and development of the nation. The major goal of this study was to examine, using secondary data the determinants of financial performance of DMBs with international operating license between 2010 and 2020. Analysis was carried on 8 listed banks using secondary data, correlation and ex-post factor research design. According to the study's findings, all of the indicators have a large impact on the financial performance of the listed financial banks, with the exception of liquidity risk, which has no significant effect. It is therefore recommended that the management of listed DMBs strictly concentrate on investing in lower risky projects, developing and adopting an effective internal control system with clear policies and procedures and to also adhere to CBN directives in maintaining a certain capital adequacy ratio and to checkmate some internal management factors that led to a significant but negative relationship between ROA and LR as the relationship is expected to be significant and positive. This would assist them in achieving their objectives and prevent liquidation and bankruptcy.

Author Biographies

Mary Seansu Lazarus, Kaduna State University, Kaduna

Department of Accounting,
Kaduna State University, Nigeria

Nuraddeen Usman Miko, PhD, Kaduna State University, Kaduna

Department of Procurement and Supply Chain Management,
Kaduna State University, Nigeria

Saifulahi Abdullahi Mazadu Ph.D, Kaduna State University, Kaduna

Department of Procurement and Supply Chain Management,
Kaduna State University, Nigeria

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Published

2023-05-09

How to Cite

Lazarus, M. S., Miko, N. U., & Mazadu, S. A. (2023). DETERMINANTS OF FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA. Gusau Journal of Accounting and Finance, 3(3), 29. https://doi.org/10.57233/gujaf.v3i3.185

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