Effect Of Liquidity Management On The Profitability Of Commercial Banks In Nigeria:-Osuala, Faith C
Abstract
The purpose of
this research was to investigate the effect of the liquidity management on
profitability ofcommercial banks in Nigeria during the period (2008 -2018). A
sample offive commercial banks was usedfor the study. The liquidity indicators
are current ratio, quick ratio, cash ratio, and investment ratio, while return
on assets (ROA) was used as proxy for profitability. Secondary data
obtainedfrom the annual reports and accounts ofthe selected commercial banks
were usedfor the study. The hypothesesformulatedfor the study were tested using
panel data multiple regression method. The empirical results show that return
on asset (ROA) was significantly affected by current ratio, quick ratio, cash
ratio and investment ratio. The study thereforerecommends that the management
of the studied commercial banks should frequently check their banks’ exposure
to liquidity risk so as to avoid
insolvency and consequently, a run on the banks.
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FAITH, C (2024). Effect Of Liquidity Management On The Profitability Of Commercial Banks In Nigeria:-Osuala, Faith C. Repository.mouau.edu.ng: Retrieved Nov 23, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-liquidity-management-on-the-profitability-of-commercial-banks-in-nigeria-osuala-faith-c-7-2
CHIDINMA, FAITH. "Effect Of Liquidity Management On The Profitability Of Commercial Banks In Nigeria:-Osuala, Faith C" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 11 Jul. 2024, https://repository.mouau.edu.ng/work/view/effect-of-liquidity-management-on-the-profitability-of-commercial-banks-in-nigeria-osuala-faith-c-7-2. Accessed 23 Nov. 2024.
CHIDINMA, FAITH. "Effect Of Liquidity Management On The Profitability Of Commercial Banks In Nigeria:-Osuala, Faith C". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 11 Jul. 2024. Web. 23 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-liquidity-management-on-the-profitability-of-commercial-banks-in-nigeria-osuala-faith-c-7-2 >.
CHIDINMA, FAITH. "Effect Of Liquidity Management On The Profitability Of Commercial Banks In Nigeria:-Osuala, Faith C" Repository.mouau.edu.ng (2024). Accessed 23 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-liquidity-management-on-the-profitability-of-commercial-banks-in-nigeria-osuala-faith-c-7-2