IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v11y2021i6p418-428id2096.html
   My bibliography  Save this article

Working Capital Management and Performance of Six Deposit Money Banks in Nigeria

Author

Listed:
  • Ochei Ailemen Ikpefan
  • Godswill Osagie Osuma
  • Tersoo Ahire
  • Grace Evbuomwan
  • Bayo Oyero Kazeem
  • Peace Chimezie

Abstract

Central to any financial institution’s success is working capital management because mismanagement (WCM) can lead to its demise. This research examines the management of working capital in deposit money banks (DMBs) in Nigeria. This study evaluated the impact of liquidity on banks’ performance to analyze how their competitiveness influences capital adequacy and assessed the correlation between loans and advances and deposit money banks’ profitability. The study utilized a regression analysis, in which panel data was used based on data retrieved from the banks’ financial statements from 2010 to 2017. The findings showed that the primary reason banks hold highly liquid assets is to guard against a rise in demand or unforeseen circumstances. Another reason is to finance working capital operations based on the theory of liquid assets. Therefore, based on the findings it is recommended that direct policies are implemented to ensure that high-volume cash transactions are dramatically reduced.

Suggested Citation

  • Ochei Ailemen Ikpefan & Godswill Osagie Osuma & Tersoo Ahire & Grace Evbuomwan & Bayo Oyero Kazeem & Peace Chimezie, 2021. "Working Capital Management and Performance of Six Deposit Money Banks in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(6), pages 418-428.
    • Handle: RePEc:asi:aeafrj:v:11:y:2021:i:6:p:418-428:id:2096
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/2096/3340
    Download Restriction: no
    File URL: https://archive.aessweb.com/index.php/5002/article/view/2096/7389
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:11:y:2021:i:6:p:418-428:id:2096. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.