publication . Article . 2015

Causal Relationship between Liquidity and Profitability of Nigerian Deposit Money Banks

Odunayo Magret Olarewaju; Oluwafeyisayo K. Adeyemi;
Open Access
  • Published: 01 Jan 2015 Journal: International Journal of Academic Research in Accounting, Finance and Management Sciences, volume 5 (eissn: 2225-8329, Copyright policy)
  • Publisher: Human Resources Management Academic Research Society (HRMARS)
Abstract
The aim of this paper is to examine the existence and direction of causality between liquidity and profitability of deposit money banks in Nigeria. Fifteen quoted banks out of the existing nineteen banks were selected for the study. They are; Guarantee Trust bank, Zenith bank, Skye bank, Wema bank, Sterling bank, First City Monument bank, United Bank for Africa, Eco bank, First bank, Access bank, Diamond bank, Unity bank, Fidelity bank, Union bank and IBTC bank. Pairwise Granga Causality test was carried out to determine the presence and direction of causality between banks’ liquidity and profitability. From the finding of this study, at 5% and 10% level of sign...
Persistent Identifiers
Subjects
free text keywords: Deposit Money Banks, Liquidity, Unidirectional, Bidirectional, Granga Causality, Monetary reform, Economics, Reserve requirement, Chinese financial system, Bank reconciliation, Official cash rate, Bank run, Financial system, Accounting, business.industry, business, Bank rate, Open market operation
Related Organizations

1. Agbada A.O and C.C Osuji (2013). The efficacy liquidity management and banking performance in Nigeria. International Review of Management and Business Research. Vol.2, Issue 1.

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11.Nzotta, S.M (2004). Money, Banking and Finance: Theory and Practice. Owerri.

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