This study seeks to examine the impact of capital structure on corporate financial performance of four cement companies in Nigeria for the period 2006 -2015. Data selected as proxies for the financial performance of the firms, which included return on asset (ROA), return on equity (ROE), and return on sales (ROS) were generated from the firm's audited annual financial reports. Data on total debt/asset ratio (TDA), longterm debt/asset ratio (LDA), and equity/asset ratio (EQA) were selected as proxies for capital structure of the firms. Also, data on asset-turnover ratio (ATO) (measurement for asset utilization), total asset (TAST) and total sale (TSAL) -measurements for firm size, were selected as control variables. The parameters of the above variables were estimated using Autoregressive Distributed Lag (ARDL) method. The result of the study revealed that all the capital structure variables (TAD, LDA and EQA) have mixed impact on financial performance indicators (ROA, ROE and ROS) used in the study. While there existed positive relationships between the control variables of ATO, TAST and performance, TSAL negatively related to financial performance measures. Following from the findings of the study, corporate decision makers in Nigerian cement industry should be careful in the use of debts. While it is necessary to use debt as a source of finance, such a decision should be a last option as supported by the Pecking order theory. Rather, retained earnings should be preferred.
This paper investigated the impact of information and communication technology on the Nigerian economy, taking evidence from the banking sector. Ordinary least squares method of regression for the period 2004-2017 was employed. Generally, the paper found that there was positive relationship between bank related information and communication technology components used and economic growth, except the automated teller machine component, under a fixed effect modeling. However, using the Breusch Godfrey (BG) dynamic modeling to remove serial autocorrelation, the paper revealed that only the mobile banking payment component positively and significantly affected the gross domestic product. On the basis of the findings, the researcher recommended that the Central Bank of Nigeria, banks and stakeholders should collaborate to strengthen the information and communication infrastructures and security systems in the country to reduce frauds, make the environment user friendly and improve public confidence.
The research examined the effects of globalization on the performance of Nigerian Commercial banks between 1986 and 2015. Specifically, the research accomplished this task using proxies such as foreign private investment policy, foreign trade policy and exchange rate policy to represent globalization, and using profits before taxes as a proxy for commercial banks' performance. The research employed panel data econometrics in a pooled regression, utilizing autoregressive (dynamic) models in which time series observations were estimated. Tests of model adequacy and normality of residuals, including the test of heteroskedasticity were conducted. The t and F statistics, Durbin-Watson and Breusch-Godfrey tests for the overall significance of the estimated regression and serial autocorrelation first-order were also conducted. Variance decomposition test of the banks' profits before taxes was carried out to establish (for the next 10-year period) the short-run equilibrium swings of the banks' future performance shocks and the ability to recover from the shocks. The results of econometric regression analyses confirmed the following: The autoregressive models were adequate (i.e. they were stable); that is, the model variables and residuals were normally distributed and equally spread (homoscedasticity).There were no first-order serial autocorrelation, a confirmation of the overall significance and non-spuriosity of the findings of the research. In all, foreign private investment and exchange rates had positive and significant effects on the current profits before taxes of commercial banks in Nigeria. However, foreign trade policies had less positive and significant effects on bank performance in Nigeria in the past 30 years; and the 10-year period variance decomposition of the variables showed that the banks would face their own short-run shocks 100% in the first-year period and recover at zero percent in the same year. However, they would face 42.4% of such a shock and recover about 58% of it in the 10 th year. The research recommended greater integration of banks in Nigeria to the global community for greater business earnings. INTRODUCTIONRecently, there has been a lot of clamour toward making the world a great village. Also, there have been intense efforts to make the world a global charity. For instance, in the field of technology the world has become a global village due to the invention of communication and information technology. You cannot imagine where someone in Nigeria sends a message to another in Germany or United State of America and receives instant respond. You cannot imagine where a football match being played in one country can be instantly witnessed by over three hundred million people, scattered all over the world, through electronic means. You cannot imagine how goods produced in a particular country can be consumed in far away countries. This is the same with the banking industry. Imagine where someone in one continent transacts with another in a different continent and makes payment throug...
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.