Credit Management and Firm’s Financial Performance of Deposit Money Bank in Nigeria.

Mustapha Olanrewaju Ayodeji; Adejuwon Joshua Adewale

doi:10.52589/AJAFR-MJPUZ0OX

Credit Management and Firm’s Financial Performance of Deposit Money Bank in Nigeria. | AB Journals

Credit Management and Firm’s Financial Performance of Deposit Money Bank in Nigeria.

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African Journal of Accounting and Financial Research

Vol. 8Issue 12025pp. 67–88Published 9 February 2025

DOI 10.52589/AJAFR-MJPUZ0OX

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Abstract:

This study investigated Credit Management and Firm’s Financial Performance of Deposit Money Bank in Nigeria. The study was guided by Information Asymmetry Theory, Transaction Cost Theory. An ex-post facto research design was used in the study. The population of the study is all commercial banks in Nigeria with the total of twenty-four (24) banks as at year 2023. The sample size for this study was obtained from secondary data of selected seven (7) banks using the purposive sampling technique. Credit management facility had a significant effect on performance as measured by return on asset (Adj R2 = 0.040612, F= 1.973611, p= 0.016466); return on equity (Adj R2 = 0.101017, F= 0.976643, p= 0.009176); and net profit margin (Adj R2 = 0.305936, F= 11.13815, p= 0.000005). It was recommended that Deposit Money Bank in Nigeria should mitigate their independent metrics, Management should Enhance Capital Adequacy and Refine Credit Risk Management Practices.

Keywords:Financial performance Return on Asset Return on Equity Credit management.

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