FIRMS ATTRIBUTES AND FINANCIAL PERFORMANCE ON LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

Examining the effect of the financial performance of organizations has gained importance in the wholesale refinance literature; however, the study investigated determinants of financial performance of listed DMBs in Nigeria for ten years from 2011-2020. The study adopts the correlation design so that to correlate the relationship between variables. The population of this study comprises the Seventeen listed deposit money banks in Nigeria as at 31 December, 2020. A total of thirteen which represent seventy-seven percent of the banks were duly used as sample for the study. The audited annual reports were obtained from Nigerian stock exchange. The result provides evidence Bank size, Capital adequacy ratio and Income diversification have insignificant impact return on assets of the banks. In the determining the effects of moderating impact on firm age is that Capital adequacy ratio, Bank size, Income diversification has a statistically insignificant influence on the return on assets of listed deposit money banks in Nigeria. Based on the findings, the bank management should also continue to put policies and strategies in place to ensure effective management of bank size and efficiency for increased profitability, on the other part, shareholders should ensure management is properly diversified the banks’ income in a way that would yield more revenue and ensure short term cash should not be channeled to capital investment.

Keywords

• Bank age
• Bank size
• Capital adequacy ratio
• Deposit money banks
• Income diversification