Trading on Equity and the Financial Performance of Deposit Money Banks Listed on the Nigeria Stock Exchange

Aza Ibrahim Eyigege
{"title":"Trading on Equity and the Financial Performance of Deposit Money Banks Listed on the Nigeria Stock Exchange","authors":"Aza Ibrahim Eyigege","doi":"10.47363/jesmr/2021(2)137","DOIUrl":null,"url":null,"abstract":"This study examines the effect of trading on equity on the financial performance of deposit money banks listed on the Nigeria Stock Exchange. The study utilizes an ex-post facto research design using panel data regression model covering the study period of ten years spanning from 2010 to 2019. Population of the study is the 22 deposit money banks listed on the Nigeria stock exchange from which a sample of 7 was drawn using purposive sampling technique.The dependent variable of the study is the financial performance measured by ROA and ROE while the independent variables are the trading on equity measured by debt to asset, debt to equity with a control variable as equity to asset. The finding of the study revealed that debt to asset and equity to asset has significant effect on the ROA while debt to equity has no significant effect on the ROA. The finding further indicated that debt to asset has significant effect on the ROE while debt to equity and equity to asset has no significant effect on the ROE. The finding therefore concludes that debt to asset and equity to asset are the major determinants of financial performance of the DMBs. The study recommends therefore that DMBs should utilize both debt with minimal cost of capital and equity as major sources of financing their operations.","PeriodicalId":309331,"journal":{"name":"Journal of Economics & Management Research","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2021-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Economics & Management Research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.47363/jesmr/2021(2)137","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0

Abstract

This study examines the effect of trading on equity on the financial performance of deposit money banks listed on the Nigeria Stock Exchange. The study utilizes an ex-post facto research design using panel data regression model covering the study period of ten years spanning from 2010 to 2019. Population of the study is the 22 deposit money banks listed on the Nigeria stock exchange from which a sample of 7 was drawn using purposive sampling technique.The dependent variable of the study is the financial performance measured by ROA and ROE while the independent variables are the trading on equity measured by debt to asset, debt to equity with a control variable as equity to asset. The finding of the study revealed that debt to asset and equity to asset has significant effect on the ROA while debt to equity has no significant effect on the ROA. The finding further indicated that debt to asset has significant effect on the ROE while debt to equity and equity to asset has no significant effect on the ROE. The finding therefore concludes that debt to asset and equity to asset are the major determinants of financial performance of the DMBs. The study recommends therefore that DMBs should utilize both debt with minimal cost of capital and equity as major sources of financing their operations.
在尼日利亚证券交易所上市的存款银行的股权交易和财务业绩
本研究考察了股权交易对尼日利亚证券交易所上市存款银行财务绩效的影响。本研究采用事后研究设计,采用面板数据回归模型,研究期为2010年至2019年,为期十年。本研究的对象是在尼日利亚证券交易所上市的22家存款银行,使用有目的的抽样技术从中抽取了7家样本。本研究的因变量是由ROA和ROE衡量的财务业绩,自变量是由债务对资产衡量的权益交易,债务对权益,控制变量为权益对资产。研究发现,负债对资产和权益对资产对资产收益率有显著影响,而负债对权益对资产收益率无显著影响。研究结果进一步表明,债务对资产的比率对净资产收益率有显著影响,而债务对股权和股权对资产的比率对净资产收益率没有显著影响。因此,该发现得出结论,债务对资产和股权对资产是dmb财务绩效的主要决定因素。因此,研究报告建议,管理部门应利用资本成本最低的债务和股权作为其业务融资的主要来源。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
自引率
0.00%
发文量
0
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信