Browsing by Author "Etudaiye-Muhtar, Oyebola Fatima"
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Item An Analysis of Credit Creation and Administration in Commercial Banks in Nigeria(Faculty of Management and Social Sciences, Ibrahim Badamasi Babangida University, Lapai, 2010) Abdulraheem, Abdulrasheed; Etudaiye-Muhtar, Oyebola FatimaThis paper examines credit creation and administration of commercial banks in Nigeria. It defines banking and credit as a process using various tables to illustrate the process of credit creation by commercial banks. It also tries to analyse the post-consolidation effects of credit creation and administration in Nigeria. It recommends among others that commercial banks should evaluate loan proposals and put in place a versatile credit policy and environment to help in minimising issues of default in repayment of credit by banks customers.Item BANK SPECIFIC CHARACTERISTICS, MACROECONOMIC FACTORS AND FINANCIAL STABILITY IN NIGERIAN COMMERCIAL BANKS(Faculty of Management Sciences, 2021) Etudaiye-Muhtar, Oyebola FatimaGiven the importance of banking sector stability in maintaining a crisis free economy, bank management and monetary authorities are always concerned about factors that trigger instability in the sector. It is on this premise that this study investigates the determinants of banking sector stability in 10 Nigerian commercial banks over the period 2006 – 2017. The study analysed annual bank specific and macroeconomic data using the pooled ordinary least square regression method. Results show that capital adequacy (0.256, p<0.01), profitability (0.021, p<0.01), liquidity (0.082, p<0.05) and inflation (0.050, p<0.1) as observed in the signs and significance of coefficients are important factors that affect bank stability in Nigerian commercial banks. The study recommends that bank management should endeavour to maintain adequate capital ratios as stipulated by monetary authorities and make sustainable profits. In addition, they should strike a balance between increased levels of liquidity and profits to prevent instability in the sector. Furthermore, monetary authorities are advised to maintain an inflation rate that would enable banks to anticipate inflation so that they can factor its cost into their pricing.Item Banks’ Price Behaviour and its Determinants in Nigeria(College of Business & Social Sciences,Covenant University,Ota,Nigeria, 2021-06-29) Etudaiye-Muhtar, Oyebola Fatima; Jimoh, Abdulrasaq Taiye; Abdurraheem, Abdulazeez Adewuyi; Ibrahim, Wasiu OluwatoyinBank-based financial systems, through the financial intermediation function, enhance economic growth. However, in the performance of this function, banks are faced with issues such as information asymmetry and inefficient institutional qualities that may lead to increased operational costs which reflects as social costs of financial intermediation and are passed on to economic units. Consequently, banks may be confronted with the problem of determining the right price for its products and services. On this premise, this study examines the pricing behaviour of Nigerian commercial banks and its determinants. The random effects regression estimation technique is used on annual panel data of 15 publicly listed Nigerian commercial banks for the period 2005 – 2017. Results from the investigation show that bank-specific factors such as bank size (0.871, p<0.05) liquidity (0.256, p<0.01), credit quality (0.095, p<0.1), and inflation (0.436, p<0.05) as a macroeconomic variable, have positive and significant effects on bank price behaviour. These findings suggest that the variables are associated with higher social costs of financial intermediation in commercial banks in Nigeria. It is recommended that in order to lower borrowing costs, banks should endeavour to reduce the level of these bank-specific factors which would lead to a reduction in costs associated with information asymmetry and inefficiency. In terms of inflation, banks are recommended to factor in inflation-related costs into their pricing process while monetary policy regulators should put in place, policies that target reduction in inflation ratesItem Corporate Debt Maturity Structure: The Role of Firm Level and Institutional Determinants in Selected African Countries(Taylor and Francis, 2017) Etudaiye-Muhtar, Oyebola Fatima; Ahmad, Rubi; Matemilola, Bolaji TundeAn appropriate debt maturity structure is essential for firms to enable them align asset structure to liabilities to prevent a mismatch. This study investigates the role of firm-level and institutional variables on debt maturity structure in selected African countries. Using panel generalised method of moment that addresses endogeneity problem; our findings reveal a dynamic process of adjustment to optimal debt maturity structure. Furthermore, firm-level variables (leverage, asset structure and firm size) provide support for the contracting cost, signaling and matching principle theories of debt maturity structure. Results of institutional variables suggest that better developed institutions promote long-term debt maturity structures.Item Corporate Social Responsibility Practices amongst Manufacturing Small and Medium Scale Enterprises (SMEs) in Ilorin, Kwara State(2013) Etudaiye-Muhtar, Oyebola Fatima; Abdulkadir, Rihanat IdowuThe study examines the corporate social responsibility practises of small and medium scale enterprises engaged in manufacturing activities in Ilorin, Kwara State. In achieving this, questionnaires were distributed to twenty small and medium scale enterprises and one hundred respondents from the host community. Percentages and Independent sampled t-test were used to analyse the data gathered for the study. Although the analyses of responses gathered shows that mall and medium scale enterprises that engaged in manufacturing activities in Ilorin metropolis carry out corporate social responsibility practices for the benefit of their host communities, however, they do not contribute to the sustenance of the amenities provided. The study also revealed that these small and medium scale enterprises concentrate their corporate social responsibility interventions on education and employment while paying little or no attention to other areas. The study further revealed that both small and medium scale enterprises and host communities agree to the fact that the former carry out CSR practises while they disagree on the fact that such activities are sustained further. Based on this, the study recommends amongst others that small and medium scale enterprises should try as much as possible to provide further support to activities earlier sponsored as that us what can make the amenities provided to serve the needs of the host communities.Item Dynamic Model of Optimal Capital Structure: Evidence from Nigerian Listed Firms(Sage Journals, 2017) Ahmad, Rubi; Etudaiye-Muhtar, Oyebola FatimaExamination of optimal capital structure in financial markets with imperfections suggests that when deviations from optimal capital structure occur, adjustment costs may prevent firms from moving towards target capital structure. However, previous studies on the capital structure of non-financial firms in Nigeria did not consider these imperfections and adjustment costs. It is against this background that this study investigates the dynamic adjustment to target capital structure by non-financial firms listed on the Nigerian Stock Exchange. By utilizing a framework that provides for the determination of adjustment costs, the results reveal the existence of dynamic adjustment to optimal capital structure suggesting attempts made by the sampled firms to maximize shareholders wealth. A comparison of the adjustment costs with those of firms in more developed economies shows that Nigerian firms have higher costs of adjustment indicating that the level of development of the market is important in lowering transaction costs. In addition, tangibility of assets, non-debt tax shield, growth opportunity, firm size, profitability and inflation significantly influence Nigerian firms’ optimal capital structure.Item The Effects of Firm Size on Risk and Return in the Nigerian Stock Market: A Sectoral Analysis(2011) Abdullahi, Ibrahim Bello; Lawal, Wahab A; Etudaiye-Muhtar, Oyebola FatimaItem An Evaluation of Products Innovation among Nigerian Commercial Banks(Department of Business Administration, University of Ilorin, 2009) Abdulraheem, Abdulrasheed; Etudaiye-Muhtar, Oyebola FatimaThe product innovation process is a concept that banks are gradually adopting in order to outwit one another in the market place. This paper therefore analyse this process among Nigerian Banks, the different functions carried out by the banks, the innovation process, the various products and services offered by the banks and also the reason why a bank has to be innovative in its service rendering process. It concludes by recommending amongst other measures that a bank has to constantly come up with innovative products to be able to compete better in today's ever changing business and technologically driven environment.Item Financial Market Development and Bank Capitalization Ratio: Evidence from Developing Countries(Sage Journals, 2017) Etudaiye-Muhtar, Oyebola Fatima; Ahmad, Rubi; Olaniyi, Taiwo; Abdulmumim, BiliqisFinancial sector liberalization in many African countries, set in a series of financial sector reforms, aimed at developing the system. Theoretically, reforms that develop the banking sector are expected to improve banks’ performance and reduce excessive bank-risk taking by enhancing bank capital ratio in addition to maintain the stability in the system. Nonetheless, literature also shows that the health of the financial system may be at risk following a liberalization process in the form of contagion effects of financial markets integration. A recent example is the global 2007/2008 global financial crisis. Against this background, this article examines the extent to which banking sector development in selected African countries affect the commercial banks’ capitalization ratio. Employing a dynamic panel regression technique for the examination while controlling for bank-specific and macroeconomic factors over the period 2000–2014, this article finds that banking sector development in the selected countries improves bank capital ratio consistent with the aims of banking sector reforms and the maintenance of stable financial system.Item Infrastructural Gap Financing in Nigeria: The Role of Sukuk Financial Instruments(2012) Etudaiye-Muhtar, Oyebola Fatima; Bashir, Rukayat; Abdulkadir, Rihanat IdowuThe importance of infrastructure in the economic development of any country cannot be overemphasised. Infrastructural projects require a constant and dependable source of financing. This source of finance is expected to cover the medium to long-term maturity and large scale nature of the projects being undertaken. Amongst other side effects of the recent global financial crisis is the drying up of liquidity that would have been used to in infrastructural financing. This and other post financial crisis has led to a call for a paradigm shift from the conventional monetary system to a system that is free from the problems inherent in the present system. One of such proposals is the introduction of the Islamic based financial system due to the success it has recorded in countries /places where it is being practised. This paper discussed the importance and problem of infrastructural financing in Nigeria with a view to identifying the gaps therein. It also critically examined the Islamic financial bond known as "Sukuk" and what is obtained in Islamic based financial systems that have effectively utilised the "Sukuk" financial instruments to overcome its infrastructural financing challenges. The paper identified that there exists an infrastructural financing gap in Nigeria and based on this, recommends, amongst other policy measures, that the Nigerian Government should intensify efforts aimed at promoting the issuance of Sukuk in the Nigerian Capital market.Item Market structure, institutional quality and bank capital ratios: evidence from developing countries(Emerald Publishing Limited, 2021) Etudaiye-Muhtar, Oyebola Fatima; Abdul-Baki, ZayadThis paper investigates the role of market structure and institutional quality in determining bank capital ratios in developing economies. The generalized methods of moment technique is used to control for auto-correlation and endogeneity in a sample of 79 publicly listed commercial banks. The study period is between 2000 and 2016. Results show that market structure (proxied with bank competition) as well as institutional quality (regulatory quality) lowers bank capital in the sampled banks. This suggests that banks operating in less competitive markets with good regulatory quality do not need to engage in excessive risk-taking activities that would necessitate holding increased level of capital. Furthermore, the interaction of competition and regulatory quality reinforces the main findings, suggesting the importance of the two variables in determining bank capital ratio. Research has limitation in that the study investigated publicly listed commercial banks, the findings may not be applicable to non-listed banks. Taking into cognizance the developing nature of the banking system in Africa, the findings from this study imply that the maintenance of an improved regulatory quality in an environment where healthy competition exists would encourage banks to hold capital ratios appropriate for their level of banking activities, that is, the banks would not engage in excessive risk-taking activities.Item Perception Study on the Effects of Interest Free Financing of Islamic Banking on Information Asymmetry among Entrepreneurs: Evidence from Nigeria(Islamic Business School, Universiti Utara Malaysia, 2022-06-30) Abdurraheem, Abdulazeez Adewuyi; Abdulkadir, Rihanat Idowu; Etudaiye-Muhtar, Oyebola FatimaThis study investigates the perception of the relationship between interest-free financing contracts of Islamic banking as an incentive to provide voluntary information disclosure among entrepreneurs in Nigeria thereby reducing the incidence of information asymmetry. Questionnaires were used as an instrument of data collection. Multivariate Logistic Regression Model was employed to estimate the model. The result showed a positive and significant relationship between the incentive of interest-free financing contracts and motivation to give voluntary information disclosure, thereby minimizing the incidence of asymmetric information. Similarly, the finding also indicates that level of education, understanding and awareness of the procedures of obtaining credit facilities from banks (both conventional and non-interest banks) has a significant relationship with the entrepreneurs’ motivation to give voluntary information disclosure to the banks concerning the financing contracts obtained from Islamic banks. However, the religious belief of the entrepreneurs did not indicate a significant relationship with their decisions to have a banking relationship with Islamic banks but was largely motivated by economic factors and business decisions in their relationship with the banks and their motivation to give voluntary information disclosure. This study, unlike most previous studies on Islamic banking in Nigeria, investigates the perception of entrepreneurs of the relationship between the incentive of interest-free financing contracts and motivation to volunteer greater information. The policymakers can, therefore, leverage the positive perception of entrepreneurs of the incentive of interest-free financing, to reduce information asymmetry in Islamic banking, and promote the establishment of more Islamic banks through appropriate legislations and regulations that can ensure enabling operating environment. This would, in turn, promote financial inclusion and reduce the widening funding gap experienced by small and medium enterprises in the country.Item PERCEPTION STUDY ON THE EFFECTS OF INTEREST-FREE FINANCING OF ISLAMIC BANKING ON INFORMATION ASYMMETRY AMONG ENTREPRENEURS: EVIDENCE FROM NIGERIA(Islamic Business School Universiti Utara Malaysia, 2022) Abdurraheem, A.A; Abdulkadir, R.I; Etudaiye-Muhtar, Oyebola FatimaThis study investigates the perception of the relationship between interest-free financing contracts of Islamic banking as an incentive to provide voluntary information disclosure among entrepreneurs in Nigeria thereby reducing the incidence of information asymmetry. Questionnaires were used as an instrument of data collection. Multivariate Logistic Regression Model was employed to estimate the model. The result showed a positive and significant relationship between the incentive of interest-free financing contracts and motivation to give voluntary information disclosure, thereby minimizing the incidence of asymmetric information. Similarly, the finding also indicates that level of education, understanding and awareness of the procedures of obtaining credit facilities from banks (both conventional and non-interest banks) has a significant relationship with the entrepreneurs’ motivation to give voluntary information disclosure to the banks concerning the financing contracts obtained from Islamic banks. However, the religious belief of the entrepreneurs did not indicate a significant relationship with their decisions to have a banking relationship with Islamic banks but was largely motivated by economic factors and business decisions in their relationship with the banks and their motivation to give voluntary information disclosure. This study, unlike most previous studies on Islamic banking in Nigeria, investigates the perception of entrepreneurs of the relationship between the incentive of interest-free financing contracts and motivation to volunteer greater information. The policymakers can, therefore, leverage the positive perception of entrepreneurs of the incentive of interest-free financing, to reduce information asymmetry in Islamic banking, and promote the establishment of more Islamic banks through appropriate legislations and regulations that can ensure enabling operating environment. This would, in turn, promote financial inclusion and reduce the widening funding gap experienced by small and medium enterprises in the country.Item Sustainable Energy Security for Nigeria Through Innovative Financing Mechanisms(Springer Nature, 2020) Oladokun, Nafiu Olaniyi; Etudaiye-Muhtar, Oyebola Fatima; Etudaiye, MuhtarThe existence of a viable and efficient power sector is crucial to the development of the social and economic development of any country. Against this background, the present study examines challenges facing the Nigerian power sector that has made it unable to contribute its quota to the development and growth of the country. Literature and data reviewed indicate that Nigeria currently generates less than 50% of available generation capacity, which is largely attributable to the existence of a financing gap that has led to a non-viable and non-sustainable sector. The inability to secure project finance for the sector undoubtedly hinders the attainment of Goal 7 of the United Nations Sustainable Development Goal of access to affordable, reliable, sustainable and modern energy for all. In view of the successes recorded with the use of the auction and forfaiting models especially as it relates to developing countries, the study proposes applying these models to the electricity sector in Nigeria in order to garner the benefits derivable from their use.