DETERMINANTS OF PROFITABILITY OF NIGERIAN DEPOSIT MONEY BANKS
This study investigates banks’ specific and macroeconomic determinants of profitability of ten listed deposit money banks in Nigerian Stock Exchange from 2008 to 2017 using fixed effect regression. The result reveals that capital adequacy, nonperforming loan, loan to total asset and size have signi...
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| Format: | Article |
| Language: | English |
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Faculty of Economics, University of Tuzla
2019-05-01
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| Series: | Economic Review |
| Subjects: | |
| Online Access: | https://www.er.ef.untz.ba/index.php/er/article/view/81 |
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| author | Wasiu Abiodun Sanyaolu Trimisiu Tunji Siynbola Gbadebo Tirimisiyu Ogunmefun Afeez Babatunde Makinde |
| author_facet | Wasiu Abiodun Sanyaolu Trimisiu Tunji Siynbola Gbadebo Tirimisiyu Ogunmefun Afeez Babatunde Makinde |
| author_sort | Wasiu Abiodun Sanyaolu |
| collection | DOAJ |
| description |
This study investigates banks’ specific and macroeconomic determinants of profitability of ten listed deposit money banks in Nigerian Stock Exchange from 2008 to 2017 using fixed effect regression. The result reveals that capital adequacy, nonperforming loan, loan to total asset and size have significant positive effect on profitability, while age was found to exert significant but negative effect on profitability. The study could not however establish significant positive effect of macroeconomic indicators (economic growth and interest rate) on profitability of deposit money banks while inflation rate has negative but insignificant influence on profitability. Arising from the findings, the study recommends that government should initiate and execute economic policies that will improve the profitability of deposit money banks in Nigeria given the key role of the sector to the economy while banks should also manage their specific variables that are likely to improve profitability.
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| format | Article |
| id | doaj-art-a4ae1c76435440cd9b86b21cb66ac889 |
| institution | Kabale University |
| issn | 1512-8962 2303-680X |
| language | English |
| publishDate | 2019-05-01 |
| publisher | Faculty of Economics, University of Tuzla |
| record_format | Article |
| series | Economic Review |
| spelling | doaj-art-a4ae1c76435440cd9b86b21cb66ac8892025-02-11T00:33:01ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622303-680X2019-05-01171DETERMINANTS OF PROFITABILITY OF NIGERIAN DEPOSIT MONEY BANKSWasiu Abiodun Sanyaolu0Trimisiu Tunji Siynbola1Gbadebo Tirimisiyu Ogunmefun2Afeez Babatunde Makinde3Department of Accounting, Crescent University, Abeokuta, Ogun State, NigeriaDepartment of Accounting, Babcock University, Ilishan Remo,Ogun State, NigeriaDeputy Bursar, Bursary Department, Crescent University, AbeokutaDepartment of Business and Finance, Crescent University, Abeokuta, Ogun State, Nigeria This study investigates banks’ specific and macroeconomic determinants of profitability of ten listed deposit money banks in Nigerian Stock Exchange from 2008 to 2017 using fixed effect regression. The result reveals that capital adequacy, nonperforming loan, loan to total asset and size have significant positive effect on profitability, while age was found to exert significant but negative effect on profitability. The study could not however establish significant positive effect of macroeconomic indicators (economic growth and interest rate) on profitability of deposit money banks while inflation rate has negative but insignificant influence on profitability. Arising from the findings, the study recommends that government should initiate and execute economic policies that will improve the profitability of deposit money banks in Nigeria given the key role of the sector to the economy while banks should also manage their specific variables that are likely to improve profitability. https://www.er.ef.untz.ba/index.php/er/article/view/81banks’ specific indicatorsdeposit money banksmacroeconomic indicatorsfixed effect |
| spellingShingle | Wasiu Abiodun Sanyaolu Trimisiu Tunji Siynbola Gbadebo Tirimisiyu Ogunmefun Afeez Babatunde Makinde DETERMINANTS OF PROFITABILITY OF NIGERIAN DEPOSIT MONEY BANKS Economic Review banks’ specific indicators deposit money banks macroeconomic indicators fixed effect |
| title | DETERMINANTS OF PROFITABILITY OF NIGERIAN DEPOSIT MONEY BANKS |
| title_full | DETERMINANTS OF PROFITABILITY OF NIGERIAN DEPOSIT MONEY BANKS |
| title_fullStr | DETERMINANTS OF PROFITABILITY OF NIGERIAN DEPOSIT MONEY BANKS |
| title_full_unstemmed | DETERMINANTS OF PROFITABILITY OF NIGERIAN DEPOSIT MONEY BANKS |
| title_short | DETERMINANTS OF PROFITABILITY OF NIGERIAN DEPOSIT MONEY BANKS |
| title_sort | determinants of profitability of nigerian deposit money banks |
| topic | banks’ specific indicators deposit money banks macroeconomic indicators fixed effect |
| url | https://www.er.ef.untz.ba/index.php/er/article/view/81 |
| work_keys_str_mv | AT wasiuabiodunsanyaolu determinantsofprofitabilityofnigeriandepositmoneybanks AT trimisiutunjisiynbola determinantsofprofitabilityofnigeriandepositmoneybanks AT gbadebotirimisiyuogunmefun determinantsofprofitabilityofnigeriandepositmoneybanks AT afeezbabatundemakinde determinantsofprofitabilityofnigeriandepositmoneybanks |