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Firm’s Attribute and Performance of Deposit Money Banks

Author

Listed:
  • Olusola E. Olowofela

    (Department of Banking & Finance, Faculty of Administration and Management Sciences, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria)

  • Abiola M. A. Tonade

    (Department of Accounting, College of Arts, Social & Management Sciences, CrescentUniversity, Abeokuta, Ogun State, Nigeria)

  • Benjamin O. Lisoyi

    (School of Management, Information Technology and Governance, University of Kwazulu-Natal Durban, South Africa)

Abstract

This study investigates the impact of firm attributes on the financial performance of deposit money banks in Nigeria’s financial sector. The scope of this research covered the period 2007 – 2018 using audited financial statements and reports of nine (9) deposit money banks listed on the Nigerian Stock Exchange. The results revealed that bank liquidity has significant negative effect, while bank growth has insignificant negative effect on financial performance. On the other hand, bank size and leverage have insignificant positive effect on the financial performance of banks. It is recommended that banks should pay attention to liquidity management and use this to enhance performance. Also, the management of banks should endeavor to make use of their growth opportunities optimally.

Suggested Citation

  • Olusola E. Olowofela & Abiola M. A. Tonade & Benjamin O. Lisoyi, 2021. "Firm’s Attribute and Performance of Deposit Money Banks," Business & Management Compass, University of Economics Varna, issue 2, pages 207-219.
    • Handle: RePEc:vrn:journl:y:2021:i:2:p:207-219
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    References listed on IDEAS

    as
    1. Olumide A. Olowokure & Muhammad Tanko & Terzungwe Nyor, 2016. "Firm Structural Characteristics and Financial Reporting Quality of Listed Deposit Money Banks in Nigeria," International Business Research, Canadian Center of Science and Education, vol. 9(1), pages 106-122, January.
    2. M. Adams & M. Buckle, 2003. "The determinants of corporate financial performance in the Bermuda insurance market," Applied Financial Economics, Taylor & Francis Journals, vol. 13(2), pages 133-143.
    3. Chung, Richard & Firth, Michael & Kim, Jeong-Bon, 2005. "Earnings management, surplus free cash flow, and external monitoring," Journal of Business Research, Elsevier, vol. 58(6), pages 766-776, June.
    4. Ali Abbas & Zahid Bashir & Shahid Manzoor & Muhammad Nadeem Akram, 2013. "Determinants of Firm¡¯s Financial Performance: An Empirical Study on Textile Sector of Pakistan," Business and Economic Research, Macrothink Institute, vol. 3(2), pages 76-86, December.
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    1. Franz Sinabell, 2021. "Die österreichische Land- und Forstwirtschaft im Kontext der Bioökonomie," WIFO Monatsberichte (monthly reports), WIFO, vol. 94(9), pages 651-664, September.

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    More about this item

    Keywords

    Deposit Money Banks; Financial Performance;

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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