3 research outputs found
FINANCIAL DEEPENING, STOCK MARKET RETURNS AND LIQUIDITY MANAGEMENT IN NIGERIA
No full textThe capital market is an engine room of economic growth but the extent to which financial deepening influences this institution (capital market) that spur economic advancement of the country is still blurred and subject to debate among researchers. Therefore, this study investigates the causal relationship and impact of three financial deepening indicators on stock market returns and liquidity in Nigeria for the period 1985-2018. The study adopts correlational research design and obtains secondary annual time series data from the Central Bank of Nigeria statistical bulletin. The two-stage least squares regression and pairwise Granger causality test are methods of data analysis used. Findings reveal that financial deepening indicators-the ratio of money supply to gross domestic product, and market capitalization as a ratio of Gross Domestic Product (market capitalization ratio) have positive significant effect on stock market liquidity while ratio of credit to private sector to Gross Domestic Product, though positive but is not significantly related with market liquidity in Nigeria. Empirical findings also reveal that, though, the three financial deepening indicators are positively signed with stock market returns, only market capitalization ratio is found to exert significant effect on the stock market returns in Nigeria. Moreover, stock market liquidity is found to granger-cause financial deepening while a bi-directional causality exists between stock market returns and stock market deepening. Using multivariate modelling approach, this study contributes to financial deepening-stock market nexus literature by emphasizing the positive impact of three different financial deepening indicators on stock market performance in terms of returns and liquidity. This study concludes that financial deepening is a catalyst to capital market performance in Nigeria and therefore recommends that Government of Nigeria should further deepen the financial sector and its synergistic effect on capital market
Impact of Technological Innovations on Bank Performance in Selected West African Countries (1997-2020)
No full textPurpose: Technological innovations are understood as new or improved processes, products or services, the technical characteristics of which are significantly different from the previous ones. Technological innovations in the banking sector have undoubtedly improved the functionality and performance of banks across the globe including West African countries such as Nigeria, Ghana and Coted’Ivoire. It has redefined the way and regime in banking operation in West Africa. It enables banks to improve the quality of service delivery to their numerous customers and makes it easy for customers to access banking services at the lowest cost possible. This study, therefore, focused on examining the impact of technological innovations on bank performance in West Africa.
Method: A set of annual time series covering the period 1997 to 2020 and a multiple regression analysis including an autoregressive distributed lag (ARDL) model, a fully modified OLS (FMOLS) model and a dynamic OLS (DOLS) model were used. Bank performance was measured using bank return on assets (ROA) and bank return on equity (ROE), while technological innovation was measured using indicators such as Internet Banking (INB), Automated Teller Machines (ATM), Mobile Banking (MBN) and Point of Sale (POS) whose control variables are inflation rate (INFR) and exchange rate (EXR).
Results and conclusion: Findings from the ARDL panel results show that both positive and negative long-term relationships exist between technological innovation and bank performance in West Africa. We thoroughly verified the results from the ARDL model with FMOLS and DOLS and the findings show that technological innovation has a positive and negative long-run relationship with bank performance in West Africa and the results were the same for Nigeria, Ghana and Ivory Coast.
Originality/Value: This study, therefore, recommends that improving the quality of technologically innovative tools of banks such as internet banking, ATMs, POS and mobile banking with quality apparatus can lead to improved bank performance. Banks should also invest in cyber security to ensure funds deposited in banks are safe which will boost investor and customer confidence, acceptance and lead to increased bank performance
Impact of Technological Innovations on Bank Performance in Selected West African Countries (1997-2020)
No full textPurpose: Technological innovations are understood as new or improved processes, products or services, the technical characteristics of which are significantly different from the previous ones. Technological innovations in the banking sector have undoubtedly improved the functionality and performance of banks across the globe including West African countries such as Nigeria, Ghana and Coted’Ivoire. It has redefined the way and regime in banking operation in West Africa. It enables banks to improve the quality of service delivery to their numerous customers and makes it easy for customers to access banking services at the lowest cost possible. This study, therefore, focused on examining the impact of technological innovations on bank performance in West Africa.
Method: A set of annual time series covering the period 1997 to 2020 and a multiple regression analysis including an autoregressive distributed lag (ARDL) model, a fully modified OLS (FMOLS) model and a dynamic OLS (DOLS) model were used. Bank performance was measured using bank return on assets (ROA) and bank return on equity (ROE), while technological innovation was measured using indicators such as Internet Banking (INB), Automated Teller Machines (ATM), Mobile Banking (MBN) and Point of Sale (POS) whose control variables are inflation rate (INFR) and exchange rate (EXR).
Results and conclusion: Findings from the ARDL panel results show that both positive and negative long-term relationships exist between technological innovation and bank performance in West Africa. We thoroughly verified the results from the ARDL model with FMOLS and DOLS and the findings show that technological innovation has a positive and negative long-run relationship with bank performance in West Africa and the results were the same for Nigeria, Ghana and Ivory Coast.
Originality/Value: This study, therefore, recommends that improving the quality of technologically innovative tools of banks such as internet banking, ATMs, POS and mobile banking with quality apparatus can lead to improved bank performance. Banks should also invest in cyber security to ensure funds deposited in banks are safe which will boost investor and customer confidence, acceptance and lead to increased bank performance
