The corporate performance of the banking sub-sector in any economy is not only of interest to the shareholders but also to the stakeholders such as the government, employees, creditors, customers and the general society. However, the DMBs in Nigeria had experienced different phases of corporate failures due mainly to poor financial performance leading to the liquidation, merger and outright revocation of licenses of many DMBs by the Central Bank of Nigeria. Financial innovation had been seen to influence the corporate performance of DMBs. In the light of all these, this study reviewed the effect of financial innovation on the corporate performance of listed DMBs in Nigeria. The study adopted ex-post facto research design. The study population consisted of thirteen ( 13) listed deposit money banks (DMBs) in Nigeria as of 31 st December 2020. The purposive sampling technique was used to sample 12 listed DMBs based on the availability of data representing 92 percent of the population. The period of study covered eleven (11) years covering 2010-2020. Secondary data were sourced from the published annual reports of the DMBs and National Bureau of Statistics (NBS). The validity and reliability were premised on the certified auditors' opinions given on the annual reports based on Sections, 401-404, CAMA,2020, pre-established degree of checks by the FRCN, CBN vetting/approval of the annual reports and management of the DMBs preparation of the reports in line with IFRS framework. The study employed descriptive and inferential (multiple regression) statistics to analyze the data at 5% level of significance.The study found that financial innovation had significant effect on earnings per share (EPS) (Adj. R 2 = 0.22; F (5,10) = 254.96; p < 0.05). The study concluded that financial innovation (FI) was a significant determinant of corporate performance. The study recommended that the management of the DMBs should take conscious efforts in their strategies, policies and plans to ensure their investments in financial innovation brings about the desirable outcome of improving performance.
The growth of Small and Medium Scale Enterprises (SMEs) had been considered a vital factor in the economic development of any country especially with regard to creation of employment and contribution to the growth of Gross Domestic Product. The growth of SMES was however hindered by challenges ranging from the lack of financial resources to expand, inadequate infrastructural facilities, lack of support from the government, harsh business environment, and above all, unpleasant taxation policy of the government creating enormous tax burdens to the SMEs. Tax Incentives had been perceived to influence the growth of small and medium enterprises (SMEs). In the light of all these, this paper reviewed the effect of tax incentives on the growth in sales revenue of Small and Medium Enterprises in Ondo and Ekiti States, Nigeria. The study employed survey design. The study population comprised SMEs registered with Small and Medium Enterprise Development Agency of Nigeria in Ondo and Ekiti States, with the total of 2,708. The Taro Yamane formula was used to obtain a sample size of 386. The owners/managers, employees, accountants and auditors of these SMEs were selected through a multi-stage sampling technique which involved the stratified, proportionate, and simple random sampling methods. Descriptive and inferential statistics were used to analyse the data. The results showed tax incentives (investment allowance, tax holiday, tax credit and tax deferment) have a significant positive effect on the growth in sales revenue of SMEs, F 679 =313.815, Adj. R 2 =0.759, p-value=0.000<0.05. Hence, the study concluded that tax incentives proxies, of investment allowance, tax holiday, tax credit and tax deferment were significant determinants of the growth in sales revenue of SMEs in Ondo and Ekiti States, Nigeria.
Financial Innovation and Return on Assets of Listed DepositMoney Banks in Nigeria IntroductionThe financial performance of the banking sector is of importance not only to the management of the banks, but also to the shareholders and the general stakeholders at large. Investment in innovation without good return on the investment makes the survival of the banks both in the short and in the long run to become difficult. This view was echoed by Amos, Umar, Busari, Ekpe Mary-Jane (2020) when they opined that the financial performance of an organization is essential for its survival both in the short and in the long run. Adigun and Okedigba (2017) submitted that without stable return on assets from the banking sector investments, satisfying the interests of the various stakeholders may become impossible and this is because financial performance is at the core of meeting the needs of these stakeholders.Adigun and Okedigba (2017) went further by positing that without good return on assets by the banking sector, the wealth of the shareholders cannot be maximized and the equity holders will not be able to get any returns on their investments. Hence, the going concern of the banks may become threatened. The banking sector in Nigeria had experienced poor financial performance problems proxy by return on assets (ROA) as far back as the year 1930 during which major banking failures were recorded.The problem of poor return on assets in the Nigeria banking sector resulting in bank failures was brought to a head in 2009 when the joint investigation of the Nigerian Deposit Insurance Corporation and the Central Bank Nigeria into the books of the 25 mega banks revealed that some of the banks were technically insolvent on account of capital inadequancy, poor credit risk management, liquidity and lack of corporate governance occasssioned by insiders' dealings by the management of the banks ( Sanusi, 2009). This investigation led to the taking over of 9 (Nine) banks by the CBN and the suspension of the management of these nine banks ( Adeyemi, 2011). According to Ugoani (2015), all the failed 9 (Nine) banks had exceeded their credit ceilings through unauthorised lending, over exposure to non performing loans, micro-financial credit risk abuses that were estimated to be in excess of N700billion.
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