Browsing by Author "Oyebola, Fatima Etudaiye-Muhtar"

Now showing 1 - 3 of 3
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    Economic Downturn and Credit Risk
    (Department of Economics, Umaru Musa Yar'Adua University, Katsina Nigeria, 2018-06) Abdulazeez, Adewuyi Abdurraheem; Abdulkadir, Rihanat Idowu; Oyebola, Fatima Etudaiye-Muhtar
    This paper investigates the impact of the economic downturn on the credit risk of the Nigerian banking sector using quarterly data for the period 2007 - 2016. The study employs ARDL (Autoregressive Distributed Lag) approach to eo in tegration. The study also conducted causality test using the Modified Wald (MWALD) test proposed by Toda and Yamamoto (1995) to determine the direction of causality among the variables. The results provide empirical support for the existence of a long-run relationship between the credit risk of Nigerian banks and macroeconomic variables, namely GDP growth, interest rate, inflation and foreign exchange rate. Most importantly the study finds greater causality power of interest rate, inflation and foreign exchange rate over the credit risk of Nigerian banks during the study period. The findings of the study have important implications for the impacts of the macroeconomic factors on the quality of the risk assets of the banks. One practical implication for Nigerian banks; is the integration and assessment of the paten tial impacts of the macro economic environments into the evaluation and assessment mechanism of the quality of their risk asset portfolio. Similarly, in order to mitigate another round of banking crisis and therefore a financial system instability in the country, the government and the monetary authority should therefore, work to harmonize the government's fiscal policies and the monetary policies with a view to reducing the interest rate, inflation and exchange rates in order to reduce the negative impacts of volatile macroeconomic environment on the risk assets of the banking sector.
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    Institutional Determinants of Firms' Capital Structure in Selected African Countries
    (Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria, 2019) Oyebola, Fatima Etudaiye-Muhtar; Ajayi, Michael Adebayo; Abdulrazaq, Taiye Jimoh; Biliqis, Ayoola Abdulmumeen
    A firm's capital structure decision is one of the main financial decisions in the corporate world due to the perceived effect it has on firm value. In addition to firm-specific and macroeconomic factors, institutional factors are important determinants of capital structure. This study investigates the effect of institutional factors on capital structure decision of firms in developing African countries. The study used a sample of 599 firms from nine selected countries employing the two-step system generalised method of moments to estimate the regression coefficients. Findings from the study reveal that government effectiveness, regulatory quality and financial market development are significant in explaining the capital structure a firm adopts in the selected countries.
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    Microeconomic and Macroeconomic Determinants of Bank Profitability in Nigeria
    (Department of Economics, Nnamdi Azikiwe University, Awka, 2017) Oyebola, Fatima Etudaiye-Muhtar; Abdulkadir, Rihanat Idowu; Lola, Kafilah Gold
    Development of the banking sector and increasing importance of banks' role in the economy has significantly led to an increase in bank-focused literature. To this end, this study investigated microeconomic (bank specific and industry-specific) and macroeconomics determinants of bank profitability in 16 Nigerian commercial banks for the period 2010-2014. Using the pooled ordinary least square regression method, microeconomic factors, such as credit risk, capital adquacy, cost management efficiency, liquidity, size and marked structure as well as macroeconomic factors such as gross domestic product and inflationary rate were regressed against two measures of bank profitability (net interest margin and return on average assets). The results indicated that size, cost management efficiency, bank liquidity and market structure are significant microeconomics determinants of Nigerian commercial banks' profits while gross domestic product and inflation are the significant macroeconomic determinants with microeconomics factors having a higher explanatory power. Based on the findings, the study recommended that for Nigerian commercial banks.