Ikpefan, Ochei Ailemen and Osuma, Godswill and Ahire, T. and Evbuomwan, Grace O. and Kazeem, Bayo Liafeez Oyero and CHIMEZIE, ONYEDIKACHI PEACE (2021) WORKING CAPITAL MANAGEMENT AND PERFORMANCE OF SIX DEPOSIT MONEY BANKS IN NIGERIA. Asian Economic and Financial Review, 11 (6). pp. 418-428.
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Abstract
Central to any financial institution’s success is working capital management because mismanagement (WCM) can lead to its demise. This research examines the management of working capital in deposit money banks (DMBs) in Nigeria. This study evaluated the impact of liquidity on banks’ performance to analyze how their competitiveness influences capital adequacy and assessed the correlation between loans and advances and deposit money banks’ profitability. The study utilized a regression analysis, in which panel data was used based on data retrieved from the banks’ financial statements from 2010 to 2017. The findings showed that the primary reason banks hold highly liquid assets is to guard against a rise in demand or unforeseen circumstances. Another reason is to finance working capital operations based on the theory of liquid assets. Therefore, based on the findings it is recommended that direct policies are implemented to ensure that high-volume cash transactions are dramatically reduced.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > HG Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Management |
| Depositing User: | Dr. Tolulope Adesina (Oladeji) |
| Date Deposited: | 29 Jun 2021 10:17 |
| Last Modified: | 29 Jun 2021 10:17 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/15013 |
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