Browsing by Author "Ajayi, M. A."

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    Evaluation of Deposit Money Banks’ Efficiency in Nigeria: Data Envelopment Analysis
    (Department of Accounting and Finance and Business Administration, Fountain University, Osogbo,, 2017) Ajayi, M. A.; Nageri, I.K; Abogun, S.; Abdulmumin, B.A.
    Ability of banks to manage risk and make better use of informational disproportion between borrowers and lenders are the essence of bank’s activities. The efficiency of Nigerian banks has become more compelling bearing in mind the various banking reform and regulations adopted by the Central Bank of Nigeria in recent year. The objective of this study is to evaluate the efficiency of deposit money banks quoted on the Nigerian Stock Exchange during the period of 2011-2015. The study follows the intermediation approach, using the Data Envelopment Analysis. Result indicates that the national licensed banks have better mean efficiency score in 2011, 2012, 2013, the international licensed banks are better in 2014 and the 2015 score shows no significant difference. The best performing bank with international license is GT Bank while Stanbic IBTC and Sterling bank are the joint best practice banks with national license. The inefficiency is attributed to scale inefficiency rather than pure technical inefficiency. Recommendations include that the regulatory authorities should be proactive in their function to cover aspects of loan disbursement, deposit mobilization and investment assets and ensure compliance.
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    Evaluation of Stock Market Development and its Contribution to Economic Growth in Nigeria
    (Published by Faculty of Management Sciences, Ekiti State University, Ado-Ekiti, Nigeria., 2018) Ajayi, M. A.; Abogun, S.; Mosobolaje, A.A
    Studies have been carried out on the impact of stock market development on economic growth across the globe but the findings remain inconclusive. This study therefore evaluates the contribution of stock market development to economic growth in Nigeria between the periods of 1986 to 2016. The study employed the method of short run error correction model (ECM) as analysis technique. The study revealed that only the banking sector development has significant direct relationship with the economic growth of Nigeria 10% level of significance while all other explanatory variables were not. Therefore, the study concluded there is no evidence that Nigerian stock market development contributed to the economic growth. It is therefore recommended that (1) stock market growth strategy should be pursued and all impediments to its development be removed (2) regulators and operators in the stock market should enhance the liquidity of the market (3) operators and participants should implement policy that will boost turnover ratio in the market.
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    Impact of Working Capital Management on Financial Performance of Quoted Consumer Goods Manufacturing Firms in Nigeria
    (Published by College of Business and Social Sciences, Covenant University, Ota, Nigeria., 2017) Ajayi, M. A.; Abogun, S.; Odediran, T.H.
    Working capital management is indispensable in strengthening firms’ liquidity position. A weak liquidity position poses a threat to the solvency of the company and makes it unsafe as well as unsound. The persistent winding up of most Nigerian manufacturing firms and the recent decline in the world oil price which significantly affected all the oil producing countries in the world of which Nigeria is not an exception demand for effective and efficient management of resources to guarantee going concern. This study examined the impact of working capital management on financial performance of quoted consumer goods manufacturing firms in Nigeria by specifically examined the impact of working capital management on return on assets and gross operating profit. The secondary data used were obtained from annual financial statements over a period of ten (10) years from 2005 to 2014 of purposively sampled fifteen (15) firms. Descriptive statistics were used to measure variations, statistical inferences were drawn using correlation and panel regression analysis was applied on performance and working capital management indicators to test the formulated hypotheses. The findings revealed that efficient working capital management increases financial performance. In conclusion, a negative relationship exists between Cash Conversion Cycle (CCC) and financial performance while there is a positive relationship between Average Collection Period (ACP) and financial performance. The study recommended that firms within the industry may increase their average collection period above the present industry average collection period of 58 days and proper analysis of working capital components should be constantly carried out to ensure that those critical areas for decision making process as it related to each of the performance measurement variables are identified and properly examined.