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

Olarewaju, Odunayo Magret

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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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.

Data Availability

Not applicable for this article.

How to Cite This Article

Olarewaju, Odunayo Magret. 2016. "Capital Base and Operational Efficiency in Nigerian Deposit Money Banks (Evidence from a Two-Way Fixed Effect Approach)". 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

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

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Classification

GJMBR-D Classification JEL Code: G21

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

Version of record

v1.2

Issue date

April 8, 2016

Language

English

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Article Matrices

Total Score: 149

Country: Nigeria

Subject: Global Journal of Management and Business Research

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

View Count (all-time): 232

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Publish Date: 2016 01, Fri

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Total Views: 814

Total Downloads: 40

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