Effect of liquidity management on the financial performance of Deposit Money Banks (DMBs) in Nigeria 2014 - 2024 Department:Accountancy By: PRINDYTECHNIE Project ID: 8890 Rating: (5.0) votes: 1 Price:₦5000 Get the Complete MaterialAbstractThis study determined the effect of liquidity management on the performance of DMBs in Nigeria. This research work presents empirical evidence of the existing relationship between liquidity management and its three dimensions (the Liquidity Ratio, Loan-deposits Ratio (LR) and Current Ratio) and the performance of deposit money banks in Nigeria from 2014 - 2024. The study adopted the commercial loan theory, anticipated income theory and shiftability theory. It employed an ex-post facto research design and used 5 out of the 15 DMBs listed on the Nigeria Stock Exchange (NSE). Multiple regression was used to analyze the data using STATA. Three hypotheses were formulated and statistically tested at 5% level of significance using Multiple Linear Regression Analysis. Findings from the empirical analysis show that there is a statistically significant relationship between liquidity management (the Liquidity Ratio, Loan-deposits Ratio (LR) and Current Ratio) and the performance of Deposit Money Banks (DMBs) in Nigeria. The correlation results reveal positive impacts between liquidity and profitability. Findings showed that profitability in terms of return on investment is maximized at the optimum liquidity level, where cost is efficient. The profit maximization of the banks, however, depends on the business model adopted by individual banks, its loan-deposits ratios, proper liquidity and current assets management. The study concludes that illiquidity and excess liquidity pose problems to bank management operations and recommends that banks should adopt an optimum liquidity model for efficiency and effectiveness. The study, however, recommends that DMBs should avoid keeping excessive liquidity as a provision for unexpected withdrawal demands of the customers and rather pay more emphasis on the three variables (liquidity, loan to deposit ratios and current ratios) to improve their performance....Preview Download Preview +Other Accountancy project topics and materials you might be interested in»The Impact of Accounting Ratio in Decision Making ( A Case Study of Nigeria Breweries Plc Enugu) »The impact of budget and budgetary control in tertiary institutions ( A Case study of imo state university )»Internal control as a tool for improving profitability»The role of financial institutions in the development of Nigeria economy»Impact of computerization of accounting system of commercial banks ( A case study of union bank plc )»The Impact of product development on banks performance ( A Case study of first bank plc )»Effects of standard costing on the profitability of manufacturing companies (a case study of nigerian breweries plc, Ama, Udi local government of Enugu state) »The role of accounting system in measuring organizational performance of transport company ( A Case study of ABC Transport )»Role of good accounting system in the management of private enterprise in Nigeria ( A Case Study of Nwaogo pam paper mills limited )»Effect of misrepresentation of information in a financial statement»Auditing in Nigeria companies, problems and prospects»Effective internal control as an aid to management efficiency ( Case Study of Nigeria Bottling Company Owerri )»The effects of computerized accounting system on the performance of banking industry in Nigeria»The impact of development finance institutions (DFIS) in economic development of Nigeria»An appraisal of fraud prevention measures in Nigerian banking sector ( Case study of access bank plc owerri )