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Financial Performance in Nigerian Banks: The Role of Intangibles

Author

Listed:
  • Amos Adejare Aderibigbe

    (Department of Accounting, Crescent University, Abeokuta, Nigeria)

  • Shakirat Adepeju Babatunde

    (Department of Accounting, Crescent University, Abeokuta, Nigeria)

  • Fasilat Iyabode Adepeju Balogun

    (Federal University of Agriculture, Abeokuta, Nigeria)

  • Ibukun Olalekan Fadairo

    (Federal University of Agriculture, Abeokuta, Nigeria)

Abstract

This study examined the impact of intangible assets (IA) on banks’ financial performance (FP), specifically in Nigeria using the five biggest banks in the country. The banks include Zenith Bank, United Bank for Africa, Guarantee Trust Bank, Access Bank, and First Bank of Nigeria. The study sought to address the conflicting findings in light of the paucity of research in developing nations, to determine the relevance of the relationships. Secondary data analysis was used, emphasizing total intangible assets and FP indicators like ROA, EPS and DPS. Using firm size as a control variable for robustness, a panel data analysis method was used while Eviews software was employed to analyze the data culled from the banks’ financial reports over ten years (2013–2022). The natural log of total assets indicates firm size, whereas the natural log of all intangible assets represents intangible assets. The findings showed intangible assets have positive significant relationships with all the FP metrics (ROA, DPS, and EPS) used. The study concluded that the IA of Nigerian banks impact their FP positively and significantly. Banks should prioritize investments in IA, to enhance the profitability metrics such as ROA, DPS, and EPS.

Suggested Citation

  • Amos Adejare Aderibigbe & Shakirat Adepeju Babatunde & Fasilat Iyabode Adepeju Balogun & Ibukun Olalekan Fadairo, 2024. "Financial Performance in Nigerian Banks: The Role of Intangibles," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(9), pages 2727-2741, September.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:9:p:2727-2741
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    References listed on IDEAS

    as
    1. Biondi, Yuri & Rebérioux, Antoine, 2012. "The governance of intangibles: Rethinking financial reporting and the board of directors," Accounting forum, Elsevier, vol. 36(4), pages 279-293.
    2. repec:eme:mrn000:01409170510629032 is not listed on IDEAS
    3. Ibrahim Sameer, 2021. "Impact of corporate social responsibility on organization’s financial performance: evidence from Maldives public limited companies," Future Business Journal, Springer, vol. 7(1), pages 1-21, December.
    4. Alcaniz, Leire & Gomez-Bezares, Fernando & Roslender, Robin, 2011. "Theoretical perspectives on intellectual capital: A backward look and a proposal for going forward," Accounting forum, Elsevier, vol. 35(2), pages 104-117.
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