SYSTEMATIC RISK AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Authors

  • Murtala Abdullahi Ahmadu Bello University Zaria
  • Professor Mohammed Habibu Sabari Ahmadu Bello University Zaria
  • Professor Bello Sabo Ahmadu Bello University Zaria
  • Dr. Aisha Nuhu Mohammed Ahmadu Bello University Zaria

DOI:

https://doi.org/10.57233/gujaf.v2i1.47

Keywords:

Foreign Exchange, Inflation Risk, Financial Crisis Risk, Financial Performance

Abstract

Banks in Nigeria experienced dwindling in financial performance as well as financial crisis within the period of the study. Therefore, this study examined the impact of systematic risk on financial performance of listed deposit money banks in Nigeria. Using a sample size of 13 banks for the period of 2007 – 2019, the effect of foreign exchange risk, inflation risk and financial crisis risk on financial performance proxy by return on equity was investigated. Secondary data is collected from the financial statements of the selected banks which was analysed using panel regression. The result of the analysis reveals that foreign exchange risk has positive insignificant relationship with financial performance of banks, inflation risk has positive significant relationship with banks financial performance and financial crisis risk has negative significant relationship on financial performance of Nigerian banks. The study therefore recommends that listed banks in Nigeria should be more cautious in their business operations during inflationary and financial crisis periods. They should also reduce their engagement in foreign exchange business.

Author Biographies

Murtala Abdullahi, Ahmadu Bello University Zaria

Department of Accounting,
Ahmadu Bello University, Zaria

Professor Mohammed Habibu Sabari, Ahmadu Bello University Zaria

Department of Accounting,
Ahmadu Bello University, Zaria

Professor Bello Sabo, Ahmadu Bello University Zaria

Department of Business Administration
Ahmadu Bello University, Zaria

Dr. Aisha Nuhu Mohammed, Ahmadu Bello University Zaria

Department of Accounting,
Ahmadu Bello University, Zaria

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Published

2021-04-21

How to Cite

Abdullahi, M., Habibu Sabari, M., Sabo, B., & Nuhu Mohammed, A. (2021). SYSTEMATIC RISK AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA. Gusau Journal of Accounting and Finance, 2(1), 13. https://doi.org/10.57233/gujaf.v2i1.47