Capital Base and Operational Efficiency in Nigerian Deposit Money Banks (Evidence from a Two-Way Fixed Effect Approach)

Capital Base and Operational Efficiency in Nigerian Deposit Money Banks (Evidence from a Two-Way Fixed Effect Approach)

Olarewaju, Odunayo Magret

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Olarewaju

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Odunayo Magret

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Ekiti State University

Capital Base and Operational Efficiency in Nigerian Deposit Money Banks (Evidence from a Two-Way Fixed Effect Approach)

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Abstract

This paper evaluated the influence of capital base of banks on the level of operational efficiency of banks in Nigeria for the period 2004-2013, with a view to providing information on financial ratio analysis as a measure of banks’ operational efficiency and how adequate is the capital adequacy of banks’ policy to significantly spur the level of their operational efficiency. Secondary data extracted from annual report and accounts of the fifteen purposively selected quoted banks were employed. Data were analysed using measures of central tendency and twoway fixed effect regression technique. Findings from the analysis showed that debt to total equity (t = -3.17, p< 0.05), core capital ratio (t = 4.65, p< 0.05), bank risk (t = -3.89, p< 0.05) were significant in evaluating the influence of capital adequacy on operational efficiency of the Nigerian money deposit banks.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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How to Cite This Article

Olarewaju, Odunayo Magret. 2016. \u201cCapital Base and Operational Efficiency in Nigerian Deposit Money Banks (Evidence from a Two-Way Fixed Effect Approach)\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 16 (GJMBR Volume 16 Issue D1): .

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GJMBR Volume 16 Issue D1
Pg. 1- 11

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-D Classification: JEL Code: G21

Submission ReceivedDecember 13, 2015
Peer Review Double Blind
Handling Editor
Accepted December 31, 2015
Published January 15, 2016

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v1.2

Issue date

April 8, 2016

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Article Matrices

Total Score: 102

Country: Nigeria

Subject: Global Journal of Management and Business Research - D: Accounting & Auditing

Authors: Olarewaju, Odunayo Magret (PhD/Dr. count: 0)

View Count (all-time): 126

Total Views (Real + Logic): 3903

Total Downloads (simulated): 1985

Publish Date: 2016 04, Fri

Monthly Totals (Real + Logic):

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Total Views: 3903

Total Downloads: 1985

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