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Impact of Liquidity Management on Return on Equity of Selected Deposit Money Banks in Nigeria (2004 -2017)

Author

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  • Dr. Abolade Francis AKINTOLA

    (Department of Finance, Babcock University, Ilishan – Remo Ogun state, Nigeria)

  • Dr. Samuel Adebayo OLAOYE

    (Department of Accounting, Babcock University, Ilishan – Remo, Ogun State, Nigeria.)

  • Dr. Pius Okafor ONICHABOR

    (DDepartment of Accounting & Finance, Mountain Top University, Ibafo,Ogun State , Nigeria.)

Abstract

The study investigated liquidity management and return on equity of selected deposit money banks in Nigeria from 2004 to 2017. Data obtained for the study were obtained from secondary source while eleven (11) deposit money banks were selected for the study. Data gathered were analyzed using ordinary least square (OLS) to examine the magnitude and significance of the relationship and the research variables. Result of the regression analysis shows that both current ratio (CU) and operating cashflow (OCR) have positive effect on return on equity of selected deposit money banks in Nigeria. While both debt ratio (DBR) and loan deposit ratio (LDR) have negative effect. It can therefore be concluded that liquidity management has insignificant effect on return of equity of deposit money banks in Nigeria. The study therefore recommends stringent penalty for any bank who fails to meet minimum liquidity ratio sets by the regulatory authorities.

Suggested Citation

  • Dr. Abolade Francis AKINTOLA & Dr. Samuel Adebayo OLAOYE & Dr. Pius Okafor ONICHABOR, 2021. "Impact of Liquidity Management on Return on Equity of Selected Deposit Money Banks in Nigeria (2004 -2017)," International Journal of Research and Innovation in Applied Science, International Journal of Research and Innovation in Applied Science (IJRIAS), vol. 6(1), pages 27-33, January.
    • Handle: RePEc:bjf:journl:v:6:y:2021:i:1:p:27-33
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