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Impact of corruption on bank profitability in Nigeria

In: Proceedings of FIKUSZ '09

Author

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  • Toni Uhomoibhi ABURIME

    (School of Accounting, Economics and Finance, Deakin University, Australia)

Abstract

This study sought to econometrically analyze the impact of corruption on bank profitability in Nigeria. Using a panel data set comprising 358 observations of 48 unique banks over the 1996 - 2006 time period, backward stepwise regression results reveal that corruption has a significant positive impact on bank profitability in Nigeria. The results lend credence to accusations that banks in Nigeria are thriving from corruption in the country.

Suggested Citation

  • Toni Uhomoibhi ABURIME, 2009. "Impact of corruption on bank profitability in Nigeria," Proceedings of FIKUSZ '09, in: László Áron Kóczy (ed.),Proceedings of FIKUSZ '09, pages 7-16, Óbuda University, Keleti Faculty of Business and Management.
    • Handle: RePEc:pkk:sfyr09:7-16
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    References listed on IDEAS

    as
    1. Athanasoglou, Panayiotis P. & Brissimis, Sophocles N. & Delis, Matthaios D., 2008. "Bank-specific, industry-specific and macroeconomic determinants of bank profitability," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(2), pages 121-136, April.
    2. Koehn, Michael & Santomero, Anthony M, 1980. "Regulation of Bank Capital and Portfolio Risk," Journal of Finance, American Finance Association, vol. 35(5), pages 1235-1244, December.
    3. Gastanaga, Victor M. & Nugent, Jeffrey B. & Pashamova, Bistra, 1998. "Host Country Reforms and FDI Inflows: How Much Difference do they Make?," World Development, Elsevier, vol. 26(7), pages 1299-1314, July.
    4. Gabriel Jimenez & Jose A. Lopez & Jesus Saurina, 2007. "How does competition impact bank risk-taking?," Working Paper Series 2007-23, Federal Reserve Bank of San Francisco.
    5. repec:bla:jfinan:v:43:y:1988:i:5:p:1219-33 is not listed on IDEAS
    6. Uhomoibhi Toni Aburime, 2009. "Impact of Political Affiliation on Bank Profitability in Nigeria," Journal of Global Economy, Research Centre for Social Sciences,Mumbai, India, vol. 5(3), pages 251-261, September.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Muhammad Mahmood Shah Khan & Farrukh Ijaz & Ejaz Aslam, 2014. "Determinants of Profitability of Islamic Banking Industry: An Evidence from Pakistan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 6(2), pages 27-46, October.
    2. Saha, Shrabani & Ben Ali, Mohamed Sami, 2017. "Corruption and Economic Development: New Evidence from the Middle Eastern and North African Countries," Economic Analysis and Policy, Elsevier, vol. 54(C), pages 83-95.
    3. Muhammad Shahbaz & Qazi Muhammad Adnan Hye & Muhammad Shahbaz Shabbir, 2013. "Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 1(10), pages 113-124, October.
    4. Christopher Hartwell, 2015. "Après le déluge: Institutions, the Global Financial Crisis, and Bank Profitability in Transition," Open Economies Review, Springer, vol. 26(3), pages 497-524, July.
    5. Farooq, Abdul & Shahbaz, Muhammad & Arouri, Mohamed & Teulon, Frédéric, 2013. "Does corruption impede economic growth in Pakistan?," Economic Modelling, Elsevier, vol. 35(C), pages 622-633.

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    More about this item

    Keywords

    Banking; Profitability; Corruption; Nigeria;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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