Economics

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Browsing Economics by Subject "Financial"

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    Impact of Dividend Payout Ratio on Financial Performance of Listed Deposit Money Banks in Nigeria
    (Bells University of Technology, 2024-07-01) JIMOH, Rokeeb Olanrewaju; Mrs. Grace A. Daniel
    This study focuses on how Dividend Payout Ratio affects the financial performance of Nigeria's listed deposit money banks. Using panel data from ten deposit money banks spanning ten years (2014-2023), the study uses both descriptive and regression analysis to investigate the relationship between Dividend Payout Ratio and corporate performance metrics such as return on capital employed (ROCE) and earnings per share. Descriptive statistics show that major financial measures vary significantly across the studied banks. A regression study, specifically the Fixed Effect Model based on the Hausman test, shows that Dividend Payout Ratio has a positive and substantial effect on ROCE. At the same time, its effect on EPS is favorable and statistically significant. Additional data indicate that bank age and leverage play a significant role in influencing ROCE, while bank size has a negative impact. And also, all variables except LNBS have a significant impact on EPS. LNBS adversely affects EPS, with a coefficient of -0.0463. DPR, BA, and LV are all positively correlated with EPS, implying that increasing these factors improves EPS. The study therefore recommend that deposit money banks can promote investor trust by exhibiting a steady and attractive Dividend Payout Ratio, perhaps leading to higher investment and shareholder loyalty. The study suggests that, further research on this topic should take into cognizance cross-national investigations, which could build a comparative analysis.
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    Tax Avoidance and Financial Performance of Listed Deposit Money Banks in Nigeria
    (Bells University of Technology, 2024-05-12) OGUNRINDE, Olubusola Oluwakemi; Mrs. Adegbite Dorcas Yetunde
    This study focused on ten listed Deposit Money Banks (DMBs) on the Nigerian Stock Exchange as of December 31, 2023 to determine the impact of tax avoidance on the financial performance of deposit money banks in Nigeria. DMBs are significant players in the economy, comprising approximately 70% of market capitalization. Employing the Panel OLS regression, this study aimed to determine the impact of tax avoidance on the financial performance of deposit money banks in Nigeria. The Hausman test results suggest that for model 1 (ROA), with a p-value of 0.6961, the random effects model is appropriate, while for model 2 (ROE), with a p-value of 0.0003, the random effects model is inconsistent, indicating potential correlation between unobserved individual effects and independent variables. The Panel OLS analysis examined the relationship between tax avoidance, firm characteristics, and financial performance metrics, specifically returns on assets (ROA) and returns on equity (ROE). While tax avoidance showed no significant association with either ROA or ROE, firm age consistently exhibited a positive relationship with both metrics, indicating that older firms tend to achieve higher returns. Firm size and leverage did not demonstrate significant impacts on either ROA or ROE. In Model 1 (ROA), the R-squared and Adjusted R-squared values are 0.2001 and 0.1664, respectively, suggesting a modest fit. Model 2 (ROE) exhibits higher R-squared (0.6925) and Adjusted R-squared (0.6460) values, indicating a stronger explanatory power. Both models have Prob(F-statistic) < 0.05, implying overall statistical significance. The Durbin-Watson statistics (Model 1: 1.2810, Model 2: 1.3278) suggest minimal autocorrelation in residuals. Based on the findings, the study recommends enhancing tax monitoring, promoting stability in DMBs, improving disclosure on firm size and leverage, and ongoing monitoring of leverage levels to ensure financial stability despite tax avoidance's lack of significance on performance.