This study examined the effect of financial risks on performance of Deposit Money Banks DMBs) using the identified explanatory variables of financial risks, viz: Credit risks, Insolvency risks, Liquidity risks and Market risks covering a period of 12 years (2007- 2018). The methodology of the study makes use of ex-post facto research design. While the population of the study were nineteen deposit money banks, the study sample comprised ten (10) DMBs. The panel regression models estimated using Unobserved Effects Model (UEM), while the result of the Hausman test indicated between fixed effect model and random effect model at 5% inference. The study findings showed that Credit Risk was negative and statistically significant to deposit money banks’ performance [β = – 13.0495; Pval = 0.013]. The result also shows that Liquidity Risk is inversely and insignificantly related to banks’ profitability [β = – 0.156; Pval = 0.6703] and Insolvency Risk (INSRK) have negative signs that are statistically insignificant to banks profitability [β = – 0.016; Pval = 0.745]. Market Risk has insignificant and positive effect on Profitability (NPBIT) [β = 0.038; Pval = 0.5720] at 0.05 level. Also, Credit Risk (CR) was found to be negative and statistically significant at Economic Value Added [β = – 7.0789; Pval = 0.006]. On the contrary, the result also shows that Liquidity Risk (LIQR) [β = 0.0264; Pval = 0.961] and Market Risk [β = 0.0369; Pval = 0.747] have positive signs that are statistically insignificant to Economic Value Added. On its part, Credit Risk (CR) established a negative and significant effect on Return on Assets [β = – 0.9647; Pval = 0.0421]. Liquidity Risk [β = – 0.0018; Pval = 0.8471] and Insolvency Risk [β = 0.0008; Pval = 0.7719] have negative and positive signs that are statistically insignificant to Return on Assets. In relation to the findings of the study, the study recommended amongst others that it is fundamental for DMBs in Nigeria to practice scientific credit risk management, improve their efficacy in credit analysis and loan management to secure as much as possible their assets, and minimize the high incidence of non-performing loans and their negative effects on financial performance
This study examines the effect of liquidity management on financial performance of banks in Nigeria for the period 2010 to 2018. The study uses secondary data from five banks listed bank on the stock exchange in Nigeria. The proxies employ for liquidity management are; Liquidity ratio (LQR), Loan to deposit ratio (LDR), Cash reserve ratio (CRR) and deposit ratio (DR), while return on assets (ROA), return on equity (ROE) and return on net interest margin (NIM) are proxies for financial performance (Profitability). The study uses panel regression analysis in estimating the model and Hausman test while making a choice between fixed effect and random effect model. The study finds that liquidity ratio (LQR) have positive and significant effect on financial performance of DMB as measured by return on assets (ROA), return on equity (ROE) and net interest margin(NIM).It therefore recommends that banks in Nigeria should establish sound governance and risk management systems by developing strategies, policies for liquidity management that is well integrated into its risk management practices as well as establish a contingency funding plan to address any liquidity shortfall during periods of stress or emergency while ensuring that active monitoring liquidity funding needs to avert any liquidity challenge that could trigger crisis in the banks is promptly addressed.
Relationship between Total Quality Management Practices and Profitability: Case of Small Hotel Sector London (UK) (Published)
The rise of competition has inclined various small-scale businesses to incorporate a robust strategy in order to increase profitability. Therefore, in the contemporary enterprise sector, exceptional importance has been given to the concept of Total Quality Management by both local and multinational organisations, considering the associated benefits of continuous improvement, increased efficiency, and the overall efficacy of the organisation. Thus, the main aim of this study is to assess the impact of TQM implementation into small scale hotels in terms of financial growth (profitability); and to develop a comprehensive and feasible quality framework for managers to adopt the best TQM practices that enhance profitability through quality improvement and to achieve expected results. The researcher has applied quantitative method by recruiting 141 participants (managerial level) to achieve the overall aim and objectives of this study, Therefore, survey questionnaires by using Likert scale has been conducted leading towards descriptive, correlation and chi-square analysis of the data collected. The results showed that various TQM practices have positive impact on the profitability of small hotels, such as continuous improvement, quality improvement, role of top management, training and education, employee empowerment and technological innovation, Finally, this research makes an original contribution in the academic and practical field as it enhances the knowledge of TQM among the managers and quality practitioners. Besides presenting some recommendations for small hotels, the study also puts some suggestions for future research in this area with limitations.
Liquidity and profitability are two important variables in the banking industry. In this article, we studied. The impact of liquidity on bank profitability in the Tunisian context. We used a sample of 18 banks over the period (2000…2017). We employ 2 models of panel static in the empirical research. We found that (liquid assets / total assets) and (total credits / total deposits) have a positive and significant impact on return on assets (ROA) whereas (current assets / current liabilities) have not significant impact on ROA. Also, we found that (liquid assets / total assets), and (total credits / total deposits) have a negative and significant impact on ROE (return on equity). Whereas (current assets / current liabilities) have not significant impact on ROE.
Analysis of cassava production in Akpabuyo Local Government Area: An econometric investigation using farm-level data (Published)
The study analyzed the economics of cassava production in Akpabuyo LGA of Cross River State. Multistage random sampling technique was used to select a sample size of 75 respondents for the study using a validated structured questionnaire. Data analysis was carried out using descriptive statistics, budgetary method and regression analysis. Findings revealed that farm size, labour, the quantity of fertilizer, and gender were the significant factors affecting cassava production in the study area. The coefficients of elasticity showed that a 10% increase in capital, labour, number of bundles and quantity of fertilizer would lead to 0.06, 0.84, 0.03 and 0.85% increase respectively in cassava production while that of farm size will lead to -0.64% decline in cassava production. Total Cost (TC) per hectare of N35,990.4 was incurred in cassava production and a net farm income (NFI) of N39,957.6 was earned and return on naira invested was N2.11. Unfavourable government policies, sparse marketing outlets, inadequate capital, high cost of inputs, insufficient farmland, high cost of transportation and lack of extension services were the severe constraint faced by cassava farmers in the study area. Extension agents should be mobilized and sent to the study area to educate the farmers on the innovation practices available for cassava farming to encourage its production.
This study examined the effects of financial innovation on the profitability of deposit money banks in Nigeria. the general purpose of the study was to examine the effect of financial innovation on the profitability while the specific objectives was to examine the effect of automated teller machine, electronic fund transfer, internet banking, mobile banking and investment on information communication technology on return on equity of deposit money banks. The study formulated four hypotheses and used panel data regression to analyze the secondary data extracted from the annual reports and accounts of the fourteen firms for the period 2009 to 2017. Return on equity was the dependent variables while automated teller machine, electronic fund transfer, internet banking, mobile banking and investment on information communication technology on return were the independent variables. Findings of the study revealed that automated teller machine and electronic fund transfer have negative relationship with return on equity while internet banking, mobile banking and investment on information communication technology have positive relationship with return on equity. The study recommends that deposit money banks should adopt financial innovations, deposit money banks invest in technological innovations and banks should transform banking service by adapting to mobile banking and agency banking so that not only to providing jobs but also increase market share.
This study investigated the influence of corporate governance on profitability of quoted oil and gas companies in Nigeria. The ex post facto research design was adopted for the study. The population of the study was made up of the twelve (12) oil and gas companies listed on the Nigerian stock exchange between 2010 and 2018. Ten (10) listed oil and gas companies in Nigeria constituted the sample size for this study. Data required for the study were extracted from the audited financial statements of the quoted oil and gas companies that constituted the sample of this study and analysis of data was carried out using descriptive statistics. Multiple regression and correlation statistics were used in testing the hypothesis postulated. The investigation revealed that a significant positive linear relationship exists between corporate governance and profitability of quoted oil and gas companies in Nigeria and that board independence, board size and board meetings accounts for 3.2 percent, 21.9 percent and 2.8 percent respectively of the profitability of quoted oil and gas companies in Nigeria. The results of the study further revealed that audit committee independence, audit committee meetings and audit committee competence accounts for 1.6 percent, 6.8 percent and 14.3 percent respectively of the profitability of quoted oil and gas companies while external auditor independence, shareholders’ involvement and ownership concentration accounts for 1.2 percent, 23.6 percent and 0.2 percent respectively of the profitability of quoted oil and gas companies in Nigeria. Based on the findings of the study, it is concluded that corporate governance has a moderate influence (52.3 percent) on profitability of quoted oil and gas companies in Nigeria. One of the recommendations made was that quoted oil and gas companies in Nigeria should continually appraise their corporate governance system with a view to determine whether the system is functioning as expected so that corrective actions can be taken to address any deficiency in the system and such appraisal should be done annually.
Profitability and Marketing Efficiency of Smoked Fish: An Empirical Evidence from Ondo State, Nigeria (Published)
The level of efficiency and profitability of the market and marketing functions are very important for sustainable marketing of agricultural products like fish. To ensure continuous availability of fish for human consumption, nutrition, and wellbeing, the Nigerian economy requires effective and efficient marketing systems. Fish marketing serves as a medium for bridging the gap between producers and consumers of fish. The study considers 80 fish marketers from Ondo state using purposive sampling technique. The data collected for the study were analysed using budgetary technique and shepherd efficiency model. The study revealed that fish marketing is profitable with gross margin of #38,101.36 and 15k as return on investment. The shepherd efficiency model revealed that fish marketing activities among fish marketers is highly efficient with efficiency value far higher (558.0%) than 100% deducing that an increase in the cost of performing marketing service (that is added time, form and place utility) by 100 percent will give a more than proportionate increase of 458.0 percent in the level of satisfaction derived from a kilogram of fish sold in the market. It was recommended that government should focus on policy that encourages farmers and young graduates in the business as it is noted for profitability, efficiency and a source of livelihood.
In the business world, stakeholders are subject to several risks on investment including losing their venture. The existence of a healthy corporate structure is vital to the pursuit of the going concern objective of firms. This study investigates determinants of listed Deposit Money Banks’ (DMBs) survival in Nigeria. The sixteen listed DMBs in Nigeria as at December 2017 were used as the population and fifteen were sampled by applying a judgemental sampling technique. The study adopted descriptive and ex-post facto research design. The Emerging Market score (EM score) model was applied in the prediction of going concern status of sampled DMBs. The data used were obtained from the annual reports and accounts of the DMBs for 2007 to 2017 accounting periods. The data were analysed using Robust GLS Regression model. The study found that there is a positive and significant impact of liquidity, leverage, profitability, solvency and asset management on DMBs’ going concern (GC). This implies that, any increase in these determinants would lead to increase in GC of DMBs. With the adjusted r2 of 0.98 and F-value significance at 0.000 from the model used in the study, the study concludes that the independent variables in the EM score model are relevant in determining the GC of DMBs. It is highly recommended that DMBs should enhance their survival status (EM score of 5.48) by improving on their liquidity, profitability, solvency, leverage and asset management ratios to solidify their GC status.
The purpose of this study is to determine the effect of chief executive officer duality on the profitability of money deposit banks. The research design adopted by this study is the quantitative approach. The population of interest for this study comprised the twenty-two deposit money banks listed on the Nigerian Stock Exchange (NSE) as at March (2016) for the period of sixteen years from 2000 to 2016. The study utilized only the secondary source of data. There exists a negative relationship between CEO duality and profitability. This further entails that for the sampled banks, CEO duality contributes negatively to the profitability of the selected money deposit banks in Nigeria. The coefficient of determination which measures the control power of the independent variable over the dependent variable was calculated with the instrument of adjusted R-Squared and it yielded 0.296170. This entails that the variations in profitability of the selected deposit money banks is not significantly influenced by CEO duality. Based on the findings, the study concludes that on the average, effect of chief executive officer duality has no significant effect on the profitability of money deposit banks. This finding reveals that dual role has no positive and significant influence and contribution towards profitability in money deposit banks. This should be thoroughly ascertained for it to be either suspended or significantly minimized.
Analysis of Poultry Eggs Marketing In South-South Part of Nigeria. A Case Study of Ika South Local Government Area, Delta State, Nigeria (Published)
Poultry egg marketing is a common enterprise in Ika South Local Government Area, Delta State of Nigeria; but there are no documented research findings on the conduct of the market and profitability to authenticate the viability of this business. Thus, this study was targeted to analyze the performance of poultry egg marketing in Ika South Local Government Area, Delta State. The study was conducted in five purposively selected villages in Ika South L.G.A., Delta State. Twelve (12) respondents were then randomly selected from each of the five selected villages to give a total of sixty respondents. Descriptive statistics were used to analyze the socio-economic characteristics of the respondents, the profitability of poultry egg marketing was determined using gross profit margin analysis, net profit margin analysis and return on investment. Gini Coefficient was used to examine the market structure for poultry egg marketing. The results of the study showed that majority (40.00%) of the poultry egg marketers were within the age group of 30≥ 40 years, majority (71.70%) of the marketers were female, 50.00% were married, 35.00% had family size of 3 – 5 persons. 30.00% of them attained tertiary level of education, 41.67% had marketing experience of 1-5 years, 53.33% had egg marketing as their primary occupation, 65.00% were none members of co-operative societies. The gross profit margin was N772,200 while the net profit margin was N747,500 per marketer per annum and return on investment was 0.29, which showed that poultry egg marketing is profitable and viable in the study area. Gini Coefficient of 0.3054 showed that there was a moderate inequality in the distribution of incomes among the marketers hence some level of perfect competition of the market structure. The major constraints militating against poultry egg marketing in the study area included: inadequate capital, poor transportation, price fluctuations and exorbitant price of poultry eggs. The study therefore recommended that credit granting institutions should be established, effective transportation system and good road networks should be constructed in the study area for easy transportation, price control mechanism should be established to avoid fluctuation of price within the marketing system and the activities of trade union should be minimized to reduce the exorbitant price of poultry eggs to consumers.
Ethical Compliance and Organizational Profitability of Telecommunication Companies in Nigeria (Published)
One of the industries in Nigeria economy that attracts much complains from her numerous customers in terms of ethical compliance is the telecommunication industry. This therefore prompts the curiosity to examine the impact of ethical compliance on organisational profitability in the Nigerian telecommunication companies. The study focuses on three ethical compliance variables which are integrity, customer value and fairness to customers while profitability was measured in terms of customers’ patronage and loyalty. The descriptive survey design was adopted and the study was guided by three research questions and three hypotheses. The population of the study comprised telecommunication subscribers in Akwa Ibom state and a sample of 384 respondents was estimated using Walpole’s sample size for infinite population formula. The selection of samples was done using convenience sampling. Ethical Compliance and Organisational Profitability Questionnaire (ECOPQ) developed by the researcher was used in data collection. The instrument was validated by experts and reliability of the instrument was established using Cronbach Alpha method of reliability testing and the reliability coefficient of 0.89 was obtained. Data obtained were analysed using simple percentages and multiple linear regression and all hypotheses were tested at the 0.05 level of significance. To enhance data analysis, the study employed the use of Statistical Package for Social Science (SPSS version 22.0). Result obtained shows significant positive impact of ethical compliance as measured by integrity, customers’ value and fairness on profitability in Telecommunication companies. It is therefore important that the management of Telecommunication companies pay more attention to the issue of ethical compliance as this will help improve their profitability.
Dynamic Analysis of Financial Statement Fraud on Profitability of Manufacturing Firms in Nigeria (Published)
The aim of this research study is to assess the impact of financial statement fraud on profitability of selected Nigerian manufacturing firms covering (2002-2016). The specific objectives focused on ascertaining the effect of variables of financial statement fraud on return on assets (ROA). To achieve these objective, descriptive research design was used for the study while secondary data was collected from the financial reports of the selected firms and website of Security and Exchange Commission. The Analysis of Covariance (ANCOVA) was used and STATA II econometric method was adopted in the analysis of the data. Beneish model was adopted in the analysis of the financial reports to create a dummy variable for the selected firms from 2002-2016 and validation of the parameters were ascertained using various statistical techniques such as t-test, co-efficient of determination (R2), F-statistics and Wald chi-square. Three hypotheses were formulated and tested using the t-statistics at 5% level of significance. The findings of the analysis revealed that there is a significant relationship between financial statement fraud and profitability in Nigerian manufacturing industry. It was found that increase in fictitious revenue in manufacturing industry would lead to low profitability. The implication of this is that increase in fictitious revenue would lead to decrease in performance. The study therefore recommended that pragmatic policy options need to be taken in the manufacturing industry to effectively manage fictitious revenue, in order to enhance manufacturing industry performance in the country and also financial statement fraud should be adequately inculcated into the internal control system of manufacturing firms for the effective running of the manufacturing industry in Nigeria.
The major objective of the study is to develop a model and to test the relationship among liquidity risk and firm performance through its facets. The main facets of firm performance in the study are i-e profitability, firm size, leverage, share prices and earnings on assets. The present study mainly attempts to analyses qualitative, quantitative & contextual relationship of liquidity risk in Pakistan. Moreover, liquidity risk is less investigated in Pakistan and mainly regarding Islamic banking sector with respect to current data. Therefore, study is mainly investigated on the fourth pillar of significance i-e contextual significance. While, Islamic banking sector of Pakistan is investigated in current study. And the data is acquired from state bank of Pakistan database and through annual reports of the banks. Though, the study has supported past investigations results. Hence, the study has revealed key findings that will be fruitful for theorists, educationists and research scholars as well.
Working Capital Management and Firm Profitability During and After the Economic Crisis among Malaysian Listed Companies (Published)
The main aim of this paper is to explore the working capital management components and examine their relationship with firm profitability among Malaysia listed companies during and after the global financial crisis of 2008-2009 and 2012-2013. Based on the descriptive results, Malaysian firms practice conservative working capital management techniques due to the fact that current ratio is high and debt ratio is low compared with prior studies.The multiple regression analysis on the 260 listed Bursa Malaysia companies shows a negative relationship between working capital management components (i.e. average collection period and average payment period) and firm profitability during and after the crisis periods. Moreover, cash conversion cycle negatively relates with firm profitability after the crisis. Inventory turnover days indicate a positive and significant relation with firm profitability during the crisis period. These findings suggest that Malaysian firms should try and collects cash from customers faster, pay bills as soon as possible and minimise the gap between initial investment and the time cash is collected from customers during both crisis and non-crisis periods. Nevertheless, management should maintain considerable level of stock to avoid shortage and supply interruption during the crisis
This paper seeks to examine the influence of process control on business performance of quoted manufacturing companies in Nigeria. Survey research design was adopted. Three (3) tentative assertions, hypotheses were formulated. The sample size was thirty-two (32) quoted manufacturing companies in Nigeria. Pearson product moment correlation and QSR-Nvivo aided the quantitative and qualitative data analysis respectively. The study findings indicated that process control has very positive relationship with business performance. In conclusion, profitability, effectiveness and efficiency adoption as proxies of business performance has been proven to be largely a function of process control. The study recommends that manufacturing firms should increase the control measure in the work process to ensure conformity and avoidance of deviations, in order to achieve higher performance in their operations.
The study focused on Fraud prevention as a dimension of Audit function on Business Profitability, effectiveness and Efficiency as measures of performance. Primary and secondary data were collected, sample size was thirty (32) quoted manufacturing companies. Pearson Product Moment Correlation powered by Statistical package for social sciences and QSR-NVIVO software aided the data analysis. The study found that the influence of fraud prevention is more positive and very significant on business profitability, than on effectiveness and business efficiency, which appears to have weak influence in the quoted manufacturing companies in Nigeria. Conclusively, the more stringent fraud prevention measures tends to be the more businesses will achieve higher growth in terms of profitability. It is recommended that firms should improve on the fraud prevention mechanism to track all dubious tendencies to avoid being defrauded.
As a result of increasing population growth and urbanization, there is a high and increasing demand for rice, this necessitates the high attention for its production. This research was conducted to determine the profitability considering the cost and returns of paddy rice production in Chikun Local Government Area of Kaduna State. Data for the study were collected from 60 randomly selected paddy rice farmers using a well structured questionnaire and analyzed using the descriptive statistics, the gross margin and net income model. The result showed that 97% were male, 88% married and had an average household size of 10people. It was interesting to realize that all respondents had one form of education or the other and their average farm size was 15ha producing about 3.2tonnes of paddy per hectare. The average variable cost incurred per hectare was estimated to be $866.3 (N172,400) while the total cost of production was put at $1002 (N199,400) and a gross revenue of $1768.84 ( N352,000) was generated. Paddy rice production in the study area was estimated to have a gross profit $902.51 (N179,600) and a net returns of $766.83 (N152,600). The study however concluded that paddy rice production in the study area is a profitable enterprise and it also recommended that consistent government policies that would favour increase in paddy production, market information, extension service delivery, input subsidization and credit facilities be implemented.
Effect of Weed Control Methods on Profitable Kenaf (Hibiscus Cannabinus) Production in Rainforest-Savanna Transition Agro-Ecology of Nigeria (Published)
A study was conducted at Institute of Agriculture Research and Training, Ibadan in 2015 and 2016 to investigate the effect and profitability of selected weed management methods on weeds, kenaf growth and yield. Ibadan is a rainforest-savanna transition agro-ecology. Seven treatments were applied, viz. weed-free control, weedy control, pre-emergence herbicide (metolachlor 1.44kg active ingredient/ hectare (a.i/ha) + hoe weeding at 4 weeks after planting (WAP), Citrullus lanatus (melon) cover + hoe weeding (4 WAP), sweet potato cover + hoe weeding (4 WAP), mulch cover (Panicum maximum) + hoe weeding (4 WAP) and two hoe weeding regimes at 4 and 8 WAP. Results showed that weed-free treatment had the tallest kenaf plant height, widest butt girth and greatest number of leaves in both years of trail. Dissimilarity to other treatments in plant height, butt girth, number of leaves, canopy cover, and core yield was found in weedy control which had the least value for these parameters throughout the study. However, butt girth was comparable across treatments applied except the weedy control. With the exception of weedy control and weed-free, other treatments had kenaf plants with similar canopy width which were significantly greater than that of weedy control and significantly less than that of weed-free treatment. Relative to weedy control, other weed management treatments had a significantly reduced weed dry weight and weediness. Kenaf plant height had significant positive correlation with butt girth, bast fibre, core fibre, canopy cover and weed control rate. However, weed biomass and weediness had significant negative correlation with kenaf traits measured. Partial budgeting analysis showed that Net income (NI) in bast fibre was highest in weed free (N3,608, 324.00/ha = US$12, 027.75/ha) and lowest net income (NI) was recorded in weedy control (N437, 098.25/ha = US$1, 456.99/ha).
The study investigated the relationship between bank equity capital and profitability by sampling fourteen (14) banks, using the purposive sampling technique, out of the twentyeight (28) universal banks operating in Ghana at the time, with data covering an eleven- year period (2005-2015). The study adopted the panel data methodology to examine the effect of bank capital on profitability. The random-effects Generalised Least Square (GLS) regression was adopted as an estimation technique for the research. The study revealed that equity capital is significantly and positively related to Net Interest Margin (NIM), and Return-on-Equity (ROE). Bank size is significantly and negatively related to ROE, and insignificantly inversely related to NIM. Regulated bank capital is a disincentive to inclusive financial intermediation in Ghana.