scholarly journals A Nexus between Capital Adequacy and Profitability in the Nigerian Deposit Money Banks

2021 ◽  
pp. 88-108
Author(s):  
Aminu Abubakar
Keyword(s):  
Data Analysis ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Least Square ◽  
Capital Adequacy ◽  
Modest Contribution ◽  
Ex Post ◽  
Regulatory Standards ◽  
Strict Compliance ◽  
The Impact

This paper examines the impact of capital adequacy on corporate profitability of selected Deposit Money Banks (DMBs) listed on the Nigerian Exchange Limited (NGX Limited) from 2005 – 2014. The paper is carried out based on the historical panel data analysis. To achieve this objective; an ex-post factor research design was employed. Descriptive statistics as well as fixed-effect and random-effect Generalized Least Square (GLS) regression techniques were used as tools of data analysis. The paper made a modest contribution to the existing body of knowledge as most of the studies done in Nigeria and at international arena were not looking at the regulatory standards or benchmark to assess the capital adequacy and its impact on the profitability performance of banks. However, the bases used to evaluate the impact of capital adequacy on the profitability at times vary with the regulatory rating standards. The findings established that capital adequacy has insignificant positive effect on the DMBs’ profitability proxies represented by ROA and ROE. It was concluded that capital adequacy does not have significant impact on the profitability of the listed DMBs in Nigeria. The paper recommends that DMBs should ensure strict compliance with the benchmark for capital adequacy set by both the CBN and the Basel since they go a long way in improving their performance.

scholarly journals An Analysis on the Impact of Firm Size on Profitability of Listed Deposit Money Banks in Nigeria

2021 ◽  
pp. 72-84
Author(s):  
Aminu Abubakar
Keyword(s):  
Data Analysis ◽  
Firm Size ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Operating Cost ◽  
Labor Cost ◽  
Least Square ◽  
Annual Reports ◽  
Ex Post ◽  
The Impact

This paper examines the impact of firm size on the profitability of listed Deposit Money Banks (DMBs) in Nigeria, carried out based on the historical panel data analysis. To achieve this objective; an ex-post factor research design was employed. Data were generated from the annual reports and accounts of the sampled quoted Deposit Money Banks (DMBs) from 2005 – 2014. Fixed-effect and random-effect Generalized Least Square (GLS) regression technique was used as tool of data analysis. The findings establish that the independent variable (firm size) has insignificant positive effect on the DMBs’ profitability proxies represented by ROA and ROE. It was concluded that Firm Size does not have significant impact on the profitability of the listed DMBs in Nigeria. The paper recommends that DMBs should maintain optimum firm size through effective management of service operations which is crucial for controlling labor cost by using the smallest possible amount of inputs which include labor and other operating cost to bring out maximum result toward improving the corporate profitability significantly.

scholarly journals Impact of Cramel Model on the Financial Performance of Commercial Banks in Pakistan

2020 ◽  
Vol V (III) ◽  
pp. 67-77
Author(s):  
Syed Masood Shah ◽  
Muhammad Faizan Malik ◽  
Sikandar Shah
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Random Effect ◽  
Fixed Effect ◽  
Least Square ◽  
Capital Adequacy ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Firm Financial Performance ◽  
The Impact

This paper analyzes the impact of CRAMEL model on commercial banks financial performance working in Pakistan. Firm financial performance used as dependent variable e.g. ROA, ROE and TQ whereas Capital Adequacy, Resource Allocation, Asset Quality, Management Efficiency, Earning Profitability and Liquidity were used as independent variables. Panel data was analyzed through ordinary least square, fixed effect and random effect models. Secondary data of twenty listed commercial banks on Pakistan stock exchange are used from the period of 2008 to 2017. Result of fixed effect model provided significant positive relationship among CA, RA and ROA, ROE, whereas EP and LIQ have substantial negative association with ROA and ROE. There is insignificant relation of AQ and EP with ROA and ROE. Furthermore, EP has substantial positive association with Tobin's Q whereas RA, ME and LIQ has substantial negative relation with Tobin's Q. Lastly CA and AQ have insignificant impact on Tobin's Q.

Towards a more ethical market: the impact of ESG rating on corporate financial performance

2019 ◽  
Vol 15 (1) ◽  
pp. 11-27 ◽  
Author(s):  
Giovanni Landi ◽  
Mauro Sciarelli
Keyword(s):  
Data Analysis ◽  
Corporate Social Performance ◽  
Stock Exchange ◽  
Social Performance ◽  
Panel Data Analysis ◽  
Abnormal Returns ◽  
Socially Responsible ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

Purpose This paper fits in a research field dealing with the impact of Corporate Ethics Assessment on Financial Performance. The authors argue how environmental, social and governance (ESG) paradigm, meant to measure corporate social performance by rating issuance, can impact on abnormal returns of Italian firms listed on Financial Times Stock Exchange Milano Indice di Borsa (FTSE MIB) Index, developing a panel data analysis which runs from 2007 to 2015. Design/methodology/approach This study aims at exploring whether socially responsible investors outperform an excess market return on Italian Stock Exchange because of their investment behavior, testing statistically the relationship between the yearly ESG assessment issued by Standard Ethics Agency on FTSE MIB’s companies and their abnormal returns. To verify the impact of an ESG Rating on a company’s abnormal return, the authors developed a panel data analysis through a Fixed Effects Model. They measured abnormal returns via Fama–French approach, running a yearly Jensen’s Performance Index for each company under investigation. Findings The empirical results denote in Italy both a growing interest to corporate social responsibility (CSR) and sustainability by managers over the past decade, as well as an improving quality in ESG assessments because of a reliable corporate disclosure. Thus, despite investors have been applying ESG criteria in their stock – picking operations, the authors found a not positive and statistically significant impact in terms of market premium, when they have been undertaking a socially responsible investment (SRI). Practical implications The findings described above show that ethics is not yet a reliable fundraising tool for Italian-listed companies, despite SRIs having a positive growth rate over past decade. Investors seem to be not pricing CSR on Stock Exchange Market; therefore, listed companies cannot be rewarded with a premium price because of their highly stakeholder oriented behavior. Originality/value This paper explores, for the first time in Italy, when market extra-returns (if any) are related to corporate social performance and how managers leverage ethics to build capital added value.

scholarly journals Renewable Energy Development as a Driver of Economic Growth: Evidence from Multivariate Panel Data Analysis

2019 ◽  
Vol 11 (8) ◽  
pp. 2418 ◽  
Author(s):  
Nadia Singh ◽  
Richard Nyuur ◽  
Ben Richmond
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Renewable Energy ◽  
Energy Production ◽  
Developing Economies ◽  
Panel Data Analysis ◽  
Least Square ◽  
Renewable Energy Production ◽  
The Future ◽  
The Impact

Renewable energy is being increasingly touted as the “fuel of the future,” which will help to reconcile the prerogatives of high economic growth and an economically friendly development trajectory. This paper seeks to examine relationships between renewable energy production and economic growth and the differential impact on both developed and developing economies. We employed the Fully Modified Ordinary Least Square (FMOLS) regression model to a sample of 20 developed and developing countries for the period 1995–2016. Our key empirical findings reveal that renewable energy production is associated with a positive and statistically significant impact on economic growth in both developed and developing countries for the period 1995–2016. Our results also show that the impact of renewable energy production on economic growth is higher in developing economies, as compared to developed economies. In developed countries, an increase in renewable energy production leads to a 0.07 per cent rise in output, compared to only 0.05 per cent rise in output for developing countries. These findings have important implications for policymakers and reveal that renewable energy production can offer an environmentally sustainable means of economic growth in the future.

scholarly journals Impact of Corporate Governance Attributes on Tax Planning of listed Manufacturing Companies: A Comparative Study between Nigeria and Malaysia

2019 ◽  
Vol 1 (2) ◽  
pp. 105-119
Author(s):  
Sule Ba’aba ◽  
Mahmud Bashiru
Keyword(s):  
Corporate Governance ◽  
Random Effect ◽  
Control Variable ◽  
Tax Planning ◽  
P Value ◽  
Governance Mechanism ◽  
Manufacturing Companies ◽  
Ex Post ◽  
Effect Estimation ◽  
The Impact

The serious decline in the price of crude oil in recent years has led the state government to look for new sources of revenue and becomes strict and aggressive to the assessment and collection of revenue from the existing sources. This study examines the impact of Corporate Governance Attributes on Tax planning of listed manufacturing companies in Nigeria and Malaysia. The corporate governance parameters include board size and CEO tenure while tax planning is proxied by the effective tax rate and firm size as control variable. The objective is to determine if there is a relationship between corporate governance attributes and tax planning which in turn may improve firm performance. The study adopts comparative and ex-post facto research design and will utilise panel data from annual reports and accounts of the listed companies for the period of five years (2014-2018). The Data were analysed using a panel regression technique to assess the effect of the independent variables on the dependent variable. Hausman specification test was conducted to choose between fixed and random effect estimation and the p-value is0.9863 which insignificant. The resultsfrom random effect estimation modelindicates a negative and significant relationship between CEOT, FSIZE and ETR and a positive relationship between BSIZE and ETR.Therefore, the study concludes that corporate governance mechanism plays a significant role in tax planning and Nigerian manufacturing companies pays high tax charges as compare to Malaysian food and beverages companies.

scholarly journals Impact of Digitalization on the Farmers in India: Evidence using Panel Data Analysis

2021 ◽  
Vol 6 (1) ◽  
pp. 5-12
Author(s):  
Rahul Singh Gautam ◽  
◽  
Venkata Mrudula Bhimavarapu ◽  
Dr. Shailesh Rastogi ◽  
◽  
...  
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Secondary Data ◽  
Development Model ◽  
Agriculture Sector ◽  
Economic Progress ◽  
New Development ◽  
The Impact ◽  
Financial Technology

The composition of digitalization and financial technology has brought about a new development model for the agriculture sector. What is the impact of digitization on India’s farmers? To answer this issue, this article examines the effects of digitalization on farmers in India using secondary data from 2018 to 2020, based on the idea of digitalization. It analyses the transmission of digitalization among Indian farmers using panel data analysis. The conclusions are as follows: Farmers' income can be significantly increased by digitalization, and farmers' digitization has resulted in agriculture sector development and contributed to economic progress.

scholarly journals Corporate Governance Codes and Intellectual Capital: Evaluating the Performance Impacts among Government-Linked Companies in Malaysia and Singapore – A Panel Data Analysis

2021 ◽  
Vol 124 ◽  
pp. 08004
Author(s):  
Yen Wen Chang ◽  
Ng Ching Yat David ◽  
Suet Cheng Low ◽  
Peck Ling Tee
Keyword(s):  
Corporate Governance ◽  
Data Analysis ◽  
Panel Data ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Policy Makers ◽  
Corporate Governance Codes ◽  
The Government ◽  
The Impact

The objective of this study was to examine and compare the effects of corporate governance (CG) and intellectual capital (IC) between Malaysia Government-Linked Companies’ (M-GLCs) and Singapore Government-Linked Companies’ (S-GLCs) firm performance (FP). Panel data analysis was employed to analyse the impact of CG’s variables and IC’s variables on FP. FP was measured by Return on Total Assets (ROA), Tobin’s Q and Earnings Per Share (EPS). Data was gathered from the website of Bursa Malaysia and the Stock Exchange of Singapore from 2005 to 2018. The sample size of this research was 60 GLCs which comprised of 34 M-GLCs and 26 S-GLCs. There were a total 840 firm year observations. Results indicated that CGs of S-GLCs have greater impact on FP when compared to M-GLCs while the findings of the IC of M-GLCs have greater impact on FP compared to S-GLCs. This research was helpful in offering further insights of CG practices and IC efficiency to the Government, Board of Directors, policy makers, shareholders and stakeholders.

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