| 1 |
Author(s):
Ghulam Subhani, Sakina Ali, Maryam Iqbal.
Page No : 1-15
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Bank Capital, Risk and Profitability: A Comparative Study of Europe and Mena Countries
Abstract
The purpose of this paper is to investigate the role of capital regulations in relation to bank risk and profitability across two different regions i.e. Europe and the Middle East and North Africa (MENA). The sample for this study includes annual data of 502 banks from European and MENA banking sectors for the period 2010-2019. The study employs OLS regression to ascertain whether Basel and non-Basel based capital ratios affect bank risk and profitability across different economic regions. The study also used Generalized Method of Moments and Limited Information Maximum Likelihood to remove the issue of possible endogeneity problems. The results show bank capital ratios comprises of risk-weighted assets are more effective in minimizing credit default risk and increasing profitability of banks in the European and MENA regions. Moreover, findings imply that complying with Basel capital guidelines do not penalize bank activities in one region compared to another. Overall results imply that bank regulators in both regions should make policies in compliance with Basel (III) capital guidelines to achieve financial stability.
| 2 |
Author(s):
Adebowale Ogunsola (Ph.D, ACA), Amabo Daniel Ogheneoparobo.
Page No : 16-29
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Capital Structure, Asset Liquidity and Financial Performance of Listed Deposit Money Banks in Nigeria
Abstract
This study examined capital structure, liquidity and financial performance of listed deposit money banks in Nigeria. The study specifically investigated the relationship between debt-to-equity ratio and financial performance of listed deposit money banks in Nigeria, the effect of total debt ratio on the financial performance of listed deposit money banks in Nigeria and how asset liquidity influences financial performance of listed deposit money banks in Nigeria. The study adopted the ex-post facto research design. The data for this study were obtained from secondary source that was derived from financial statements of selected deposit money banks listed on the Nigerian Exchange. The data covered the period 2011–2020. Descriptive and inferential statistical methods were employed in analyzing the data gathered. The findings of the OLS regression analysis revealed that debt equity ratio (DER) has significant negative impact on financial performance. However, findings revealed that total debt to total asset ratio (TTR) has a significant and positive impact on the financial performance, while asset liquidity (ASL) has a negative and significant impact on financial performance of the sampled banks in Nigeria. It is concluded that the variables of capital structure as used in the study, such as debt to equity ratio, total debt to total asset ratio, and asset liquidity, have mixed results of positive and negative effects on financial performance of deposit money banks in Nigeria.
| 3 |
Author(s):
Mbelu Obiageli Ngozi, Prof. Ifionu Ebele Patricia.
Page No : 30-48
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Agricultural Financing and Economic Growth in Nigeria
Abstract
The study examined the influence of agricultural financing on economic growth in Nigeria over the period 1981 to 2019. The objective of the study is to the impact of the long-term relationship between various forms of agricultural financing on Nigeria’s economic growth. The study employs the stationary test, the co-integration test, the error correction model and the Granger causality model. All variables were stationary at the first difference, and the co-integration test evidenced a long-run relationship. The study identified, in the long run, that; the agricultural credit guarantee scheme fund shows a positive and significant influence on the gross domestic product in Nigeria. The commercial bank loan and community –micro-finance bank loan shows a positive and significant influence on the gross domestic product in Nigeria within the reference period. In light of the findings, the study concluded that all the variables employed predict Nigeria’s gross domestic product. Furthermore, the granger causality results show a demand following a role as against supply leading role, revealing that increase in output level in Nigeria significantly support/promotes agricultural financial instrument. The study recommends that the Federal government should motivate commercial banks to provide adequate credit facilities to the Agricultural sector through moderate bank lending rates for ease of farming business in Nigeria. Proactive campaigns on the availability of credit facilities for farmers to enable them to have access to loans at a single-digit interest rate. This could be achieved through social media, door-to-door vibes, town hall meetings and market squares. Government should create an enabling environment for farmers through the provision of adequate security, pest control measures and seedlings.
| 4 |
Author(s):
Akinrinola Olalekan Oladipo, Audu Solomon Ibrahim.
Page No : 49-57
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Institutional Features and the Level of Unclaimed Dividend in Nigeria
Abstract
The level of unclaimed dividend in Nigeria has been a source of concern to the capital market regulators in Nigeria. Hence, this study is designed to examine the effect of institutional features on the level of unclaimed dividend in Nigeria. This study is framed firmly on the rational choice theory. The ex-post facto research design was used and secondary data was collected over a ten-year period which spanned from 2010 to 2019. The multiple regression model was used to analyze the effect of shareholders’ participation and payment channels on the level of unclaimed dividend in Nigeria. The result from the study reveals that both shareholders’ equity capitalization and cheque payment have an inverse effect on the level of unclaimed dividend in Nigeria while savings and electronic fund transfer have a positive effect on the level of unclaimed dividend in Nigeria. The study concluded that institutional characteristics have a significant effect on the level of unclaimed dividend in Nigeria. It is therefore recommended from the study that due diligence be taken in getting the correct information from potential investors when they patronize the shares of listed firms in Nigeria.
| 5 |
Author(s):
Okechukwu Theresa Ijeoma (Rev. Sr), Ugwu James Ike (Ph.D).
Page No : 58-88
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Effect of Financial Assets on Financial Performance of Pharmaceutical Firms in Nigeria
Abstract
The study evaluates the effect of financial assets on the financial performance of pharmaceutical firms in Nigeria from 2011-2020 with cash, stock and loans as independent variables and return on assets as dependent variables. Data extracted from the published financial statements of the firms for the period covered were subjected to descriptive analysis and inferential statistics analysis. Diagnostics tests include: Panel Unit Root test, Cointegration test, Hausman test. Panel Regression Analysis result reveals positive but insignificant effect of cash, stocks and loans on return on assets of pharmaceutical firms in Nigeria. The conclusion drawn from the findings is that financial assets contribute very little to the financial performance of pharmaceutical firms in Nigeria. The higher the financial assets of pharmaceutical firms in Nigeria, the better, as the performance would be improved. The study recommends amongst others that pharmaceutical firms should improve on their cash management efficiency. Management of pharmaceutical firms in Nigeria should determine the optimal cash level of the firms to avoid liquidity problems while at the same time avoid ideal funds.
