Capital Structure and Financial Performance of Quoted Deposit Money Banks (DMBs) in Nigeria

Bala, Sani Abdul Rahaman; Babangida, Mohammed Auwal

doi:10.9734/ajeba/2022/v22i530557

Cited by 4 publications

(5 citation statements)

References 7 publications

(12 reference statements)

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“…Construction companies listed on the JSE may consider implementing this strategy to assess if it enhances their financial performance. According to Yahaya and Bala (2015), a lack of working capital management (WCM) can reduce a company's profitability and perhaps result in a financial catastrophe. If this applies to other industries, it should also apply to construction companies listed on the JSE.…”

Section: Discussionmentioning

confidence: 99%

Effects of working capital management on the profitability of South African construction companies listed on the JSE

Sejake,

Beneke,

Maseko

et al. 2024

IJRBS

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This study examines the correlation between inventory and accounts payable management and the profitability of construction companies listed on the Johannesburg Stock Exchange (JSE). The annual financial statements of all 13 listed construction businesses from 2009 to 2019, including statements of financial position and financial performance, were obtained from an external database for statistical analysis. The study employed multiple linear regression to assess the impact of working capital management on the financial performance of construction companies listed on the JSE. Additionally, a correlation model was utilised to investigate any potential relationships among the variables being examined. The study's findings indicate that the management of working capital has a notable impact on the profitability of construction companies listed on the Johannesburg Stock Exchange (JSE) in South Africa. Despite contradicting findings from other studies that support the opposite conclusion, this study demonstrates that effective management of working capital does not necessarily lead to a positive relationship with financial performance for financial managers of construction companies. Therefore, it is crucial to consider other aspects of management in addition to working capital.

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Section: Discussionmentioning

confidence: 99%

Effects of working capital management on the profitability of South African construction companies listed on the JSE

Sejake,

Beneke,

Maseko

et al. 2024

IJRBS

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“…So, working capital management (WCM) is a critical aspect of monetary management for many businesses. Businesses could have a working capital balance that optimizes their worth (Deloof, 2003;Yahaya & Bala, 2015). It is a crucial corporate financial choice since it has a direct impact on the institutions profitability (Gill et al, 2010;Ponsian, 2014;Raheman & Nasr, 2007).…”

Section: Background Of the Studymentioning

confidence: 99%

“…Yahaya & Bala (2015) studied the effect of working capital management on profitability. The aim was to determine how banks in Nigeria manage their operating capital.…”

mentioning

confidence: 99%

Working Capital Management and Profitability of Commercial Banks in Nepal

Sah

2023

JOM

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This paper purposes to analyze effects of working capital management on profitability of commercial banks. Empirical data utilized to explores the association between of working capital management and profitability indicators. Based on empirical data, some major financial indicators, credit to deposit ratio, cash reserve ratio, cash and bank balance to total deposits ratio, working capital turnover ratio and liquidity ratios considered as an independent ratio and return on assets, return on equity, and net profit margin as dependent ratios were calculated. Among 20 of the commercial banks of Nepal, only seven commercial banks are taken as sample for the research work. Data were accumulated from secondary data of annual report of model bank and central bank from 2012 to 2022 by the judgmental sampling. Major financial ratios and statistical tools were utilized for the analysis. Descriptive and inferential statistical tools utilized to obtain outcome. In this study, three regression models were tested, and the ROA, ROE, and NPM models were shown to be statistically significant. In the ROA, ROE, and NPM models, respectively, 41%, 52%, and 55% of the sample variation is explained by independent variables.

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“…Similarly, Mburu et al (2020) stated that working capital is vital to the continued operations of companies involved in various activities. Working capital management has to do with managing all segments of current assets such as cash and equivalent assets and current liabilities such as short-term debts (Yahaya and Bala, 2015). When it is no longer circulated, it ceases to exist.…”

Section: Introductionmentioning

confidence: 99%

Effect of working capital management and credit management policy on financial performance of commercial bank in Nepal

Maharjan¹

2023

Lumbini J. Bus. & Econ.

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This study analyzes the impact of working capital management and credit management policy on the financial performance of Nepalese commercial banks. The study uses data from 16 commercial banks, collected from their annual reports, over the period from 2014/15 to 2021/22. The dependent variables considered are return on asset and return on equity, while the independent variables are working capital, loan to deposit ratio, capital adequacy ratio, non-performing loan, cash asset ratio, operating cash flow to total asset, and rate of bank’s ability to return deposits. The study finds that working capital, cash asset ratio, operating cash flow to total assets, and rate of bank’s ability to return deposits have a positive impact on bank return on assets and return on equity. On the other hand, loan to deposit ratio, capital adequacy ratio, and non-performing loan have a negative impact on both return on assets and return on equity. The study provides insights for the management of commercial banks to enhance their financial performance.

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Capital Structure and Financial Performance of Quoted Deposit Money Banks (DMBs) in Nigeria

Cited by 4 publications

References 7 publications

Effects of working capital management on the profitability of South African construction companies listed on the JSE

Effects of working capital management on the profitability of South African construction companies listed on the JSE

Working Capital Management and Profitability of Commercial Banks in Nepal

Effect of working capital management and credit management policy on financial performance of commercial bank in Nepal

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