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Effect of Non-Financial Measures of Business Operations on Financial Performance of Deposit Money Banks in Nigeria

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  • Chibunna Onyebuchi Onwubiko

    (Department of Accountancy, Faculty of Economics and Management Sciences, Abia State University, Uturu, Nigeria.)

  • Joseph U. B. Azubike

    (Department of Accounting, College of Management Sciences, Michael Okpara University of Agriculture, Umudike, Umuahia, Abia State, Nigera.)

  • John Uzoma Ihendinihu

    (Department of Accounting, College of Management Sciences, Michael Okpara University of Agriculture, Umudike, Umuahia, Abia State, Nigera.)

  • Henry Arinze Nwankwo

    (Department of Accountancy, Faculty of Economics and Management Sciences, Abia State University, Uturu, Nigeria.)

Abstract

This study investigates the effect of non-financial measures of business operations on financial performance of deposit money banks in Nigeria. The study specifically studied the effect of customer satisfaction, service quality delivery, employee development and corporate social responsibility on return on equity of deposit money banks in Nigeria. The study total population is 780 staff of the banks. The study adopted Taro Yamane to obtain a sample of 264 respondents. Questionnaire was distributed to the respondents and only 224 questionnaires were returned. Analysis was carried out based on the number of questionnaire returned. The relationships between the variables were analyzed using regression analysis. The study found a significant relationship between customer satisfaction, product and service quality and employee development and return on equity. The study however, found no relationship between corporate social responsibility and return on equity. The study therefore, concludes that non-financial measures of business operations actually influence financial performance of deposit money banks in Nigeria. The study recommends that: banks should place priority on customer satisfaction if they want to increase their returns; develop more innovative products and invest more in new technology; train and retrain their employees in the use of new technologies.

Suggested Citation

  • Chibunna Onyebuchi Onwubiko & Joseph U. B. Azubike & John Uzoma Ihendinihu & Henry Arinze Nwankwo, 2024. "Effect of Non-Financial Measures of Business Operations on Financial Performance of Deposit Money Banks in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(4), pages 2140-2156, April.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:4:p:2140-2156
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    References listed on IDEAS

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    1. Ittner, CD & Larcker, DF, 1998. "Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction," Journal of Accounting Research, Wiley Blackwell, vol. 36, pages 1-35.
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