Effect of Firm Characteristics on Financial Performance of Quoted Deposit Money Banks in Nigeria
Contemporary Issues in Business Management: A Multidisciplinary Approach (Book of Readings), 2017
25 Pages Posted: 28 Jul 2017 Last revised: 23 Sep 2017
Date Written: May 25, 2017
This study assesses the extent at which firm characteristics affects financial performance of quoted deposit money banks in Nigeria from 2010-2015. Three hypotheses were formulated in line with objective of the study. Ex-post facto research design and time-series data were adopted and the data for the study were obtained from Fact books, annual reports and account of the quoted banks under study. Pearson coefficient of correlation and ordinary least square (OLS) were applied to test the three hypotheses formulated with aid of STATA 13 statistical software. Findings showed that firm characteristics (proxy by Size) has a positive and statistical significant effect on financial performance (proxy by Return on Asset, Return on Equity and Return on Capital Employed) at 5% significant level. Base on these findings, the study recommends among others that banks should adequately mange how they re-invest their resource so as to prevent any form of mismanagement of resource that can guarantee their existence in business.
Keywords: Firm characteristic, firm size and financial performance
JEL Classification: L20,L25, M54
Suggested Citation: Suggested Citation