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The Effect of Quantitative Complexity Analysis on the Resilience of Nigerian Banks. Case Study: The Four Listed Nigerian Banks on the Premium Board of the Nigerian Exchange Group (NGX) for the Year 2019 -2022

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  • Apanisile Temitope Samuel

    (Doctoral Thesis, Department of Business Administration, ESPAM Formation University, Cotonou)

Abstract

The main aim of this study is to investigate the effect of quantitative complexity analysis on the resilience of Nigerian banks. The descriptive research strategy was carefully selected for this examination because it has the intrinsic potential to capture and depict the investigated phenomena in their natural surroundings. All of the Nigerian banks listed on the premium board of the Nigerian Exchange Group (NGX) from 2019 to 2022 make up the population of the study. During this time, there were four banks that were listed. Zenith Bank, First Bank of Nigeria, Access Bank, and United Bank for Africa are among the banks. The sample size for the investigation was chosen using a purposive sampling technique. The four listed banks on the premium board of the NGX were chosen because they are the most capitalized stocks of banks in the Nigerian banking industry that meet trading global standards and stringent corporate governance set by the Nigerian Exchange, hence the purposive sampling technique was adopted. The annual reports and financial statements of the chosen banks for the years 2019 to 2022 served as the source of the data for this study. Descriptive statistics and inferential statistics were both used to analyze the obtained data. The traits of the banks that were chosen are treated using descriptive statistics and the inferential statistics is used to analyze the quantitative complexity and resilience of the chosen banks for the Network analysis, Principal component analysis, Hierarchical clustering analysis, Capital adequacy ratio (CAR), Non-performing loans (NPL) ratio, Liquidity ratio and Efficiency ratio. IBM SPSS was used to analyze the financial data of all the banks for insights on PCA and HCA and then Ontonix QCM Software was used to explore and analyze the financial data of all the banks for insight on Network Analysis. And Excel Spreadsheet was used to analyze the financial data of the 4 banks for insight to CAR, NPL, Liquidity Ratio and Efficiency Ratio. The study discovered that better resilience is positively associated with higher levels of quantitative complexity analysis in a financial structure of the bank and operations. This shows that banks are better able to resist negative occurrences or shocks than those who will not regularly participate in quantitative complexity analysis of their financial structure and operations. Banks must make an effort to preserve requisite complexity in the BANI (brittle, ambiguous, nonlinear, and incomprehensible) business environment of today. The study recommends among others that for companies and banks, BANI circumstances make it challenging to develop successful plans for the future. Companies and banks must be prepared to swiftly adapt and thrive in order to remain competitive in a world where change occurs fast and unexpectedly. In order for businesses and banks to develop resilience, they must understand the idea of requisite complexity, which is the appropriate level of complexity needed to address and navigate any issue or situation.

Suggested Citation

  • Apanisile Temitope Samuel, 2024. "The Effect of Quantitative Complexity Analysis on the Resilience of Nigerian Banks. Case Study: The Four Listed Nigerian Banks on the Premium Board of the Nigerian Exchange Group (NGX) for the Year 20," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(7), pages 17-71, July.
    • Handle: RePEc:bjc:journl:v:11:y:2024:i:7:p:17-71
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