Research Article

EFFECT OF CORPORATE LIQUIDITY MANAGEMENT ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Sani Saminu1*, Ripiye Waetsi Bitrus1, Hashim Usman Muhammad2, Murna Sam Aleng1, Masud Haruna Aminu2, Christiana Joshua Samari1, Kubuza Ajiduku1, Ibrahim Baba Musa3, Dauda Ibrahim Dan’asabe4
1 Department of Accounting Faculty of Management Sciences, Federal University Wukari, Taraba State
2 Department of Banking and Finance Faculty of Management Sciences, Federal University Wukari, Taraba State
3 Department of Accounting Ahmadu Bello University Zaria
4 Department of Economics Faculty of Management Sciences, Federal University Wukari, Taraba State
* Corresponding author: sanisaminu4u@gmail.com
Published: Dec, 2025
DOI: 10.67894/bbr.2025.1sik8jcs
Pages: 1-21
Views: 13
Downloads: 5

Abstract

Financial survivability is threatened in the Nigerian banking sector largely as a result of liquidity mismanagement, which adversely impact on the performance of the banking industry and the economy. This prompted investigation into liquidity management and performance of listed Deposit Money Banks in Nigeria. Secondary data were extracted from the financial report and filters were used to arrive at adjusted population. Longitudinal research design was used using panel regression to analyses twelve (12) sampled listed Deposit Money Banks from the population of fourteen (14) from 2015 to 2023. The correlation result showed that Capital Adequacy Ratio and Loan and Advance Ratio had positive and significant relationship with Return on Asset while Current Ratio had negative but insignificant relationship with Return on Asset. The random effect regression result showed that, Capital Adequacy Ratio had positive and significant effect on Return on Asset of listed Deposit Money Banks in Nigeria. However, Loan Advance Ratio and Current Ratio had negative but insignificant effect on Return on Asset of listed Deposit Money Banks in Nigeria. The study found out that, liquidity management is poor in the above-named firms and it is therefore imperative for the board of directors to constitute a board that will ensure proper utilization of liquidity to achieve the desired profitability.

Keywords

Capital adequacy ratio loans and advance ratio and current ratio.

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How to Cite

Saminu, S., Bitrus, R. W., Muhammad, H. U., Aleng, M. S., Aminu, M. . H., Samari, C. J., Ajiduku, K., Musa, I. B., & Dan’asabe, D. I. (2025). EFFECT OF CORPORATE LIQUIDITY MANAGEMENT ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA. Bayero Business Review, 9(2), 1-21. https://doi.org/10.67894/bbr.2025.1sik8jcs

S. Saminu, R. W. Bitrus, H. U. Muhammad, M. S. Aleng, M. . H. Aminu, C. J. Samari, K. Ajiduku, I. B. Musa, and D. I. Dan’asabe, "EFFECT OF CORPORATE LIQUIDITY MANAGEMENT ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA," Bayero Business Review, vol. 9, no. 2, pp. 1-21, December 2025. doi: 10.67894/bbr.2025.1sik8jcs

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