Post consolidation assessment of the effect of capital structure on banks’ performance in Nigeria

Simple item page
dc.contributor.authorOlaniyi, T.A
dc.contributor.authorAdeyemi, A.Z
dc.contributor.authorOloyin-AbdulHakeem, B.O
dc.date.accessioned2021-03-08T08:13:27Z
dc.date.available2021-03-08T08:13:27Z
dc.date.issued2013
dc.description.abstractThis study examines the effect of capital structure of bank performance in post-consolidation era in Nigeria with a view to validate or refute the long standing Modigliani and Miller theory of irrelevance or the Traditional relevance theory. The secondary data used were obtained from annual financial statements over a period of seven (7) years from 2005 to 2011 of the stratified sampled fifteen (15) banks listed on the Nigerian Stock Exchange. A panel regression analysis was applied on Return on Assets (ROA) as performance indicator as well as short term debt ratio (STDTA) and total debt ratio (TDTA) as proxies for capital structure while a 2-tailed t-test was used to test the formulated hypothesis at 5% significance level. The study finds an insignificant negative impact of capital structure (STDTA and TDTA) on bank performance (ROA), a compliance with MM irrelevance theory leading to the acceptance of null hypothesis; that no significant relationship exist between capital structure and bank performance in Nigeria. The study recommends that instead of emphasizing capital structure composition, managerial efficiency must be sought instead, with a view to enhance bank performance/profitability, achieve all-round stake holders satisfaction and engender a more viable and reliable banking sector in the country.en_US
dc.identifier.citationOlaniyi, T.A., Adeyemi, A.Z. & Oloyin-AbdulHakeem, B.O. (2013): Post consolidation assessment of the effect of capital structure on banks’ performance in Nigeria. Advances in Management. 12 (1); 99-110en_US
dc.identifier.urihttp://hdl.handle.net/123456789/4456
dc.language.isoenen_US
dc.publisherDepartment of Business Administration, University of Ilorin, Ilorin.en_US
dc.subjectconsolidationen_US
dc.subjectcapital structureen_US
dc.subjectbank performanceen_US
dc.subjectcapital baseen_US
dc.titlePost consolidation assessment of the effect of capital structure on banks’ performance in Nigeriaen_US
dc.typeArticleen_US

Files

Original bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
Post consolidation assessment of the effect of capital structure on banks’ performance in Nigeria..pdf
Size:
8.79 MB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.69 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections