Firms’ Financial Performance and Compliance with the Provisions of BOFIA by Listed Deposit Money Banks in Nigeria

This study examines the impact of firms’ financial performance on the level of compliance with the provisions of BOFIA by listed deposit money banks (DMB) in Nigeria. The population of the study constitute all the fifteen (15) listed deposit money banks in Nigeria out of which a sample of thirteen (13) banks was drawn. Secondary data were generated from the annual reports and accounts of the sampled banks for a period of nine years from 2008- 2016 and the BOFIA (27 provisions were extracted). Liquidity and profitability are used as the independent variables, compliance index is used as the dependent variable whereas company age, company size, and degree of internationalisation are used as the control variables. Descriptive statistics, correlation and regression analyses were employed to analyse the data through the use of STATA Software version 13.0. The result of the data analysis established that Liquidity has a negative and significant impact on the level of compliance with provisions of BOFIA while profitability has a negative and insignificant impact on the level of compliance with provisions of BOFIA. The study, therefore, recommends that managers of listed DMBs in Nigeria should ensure that liquidity is at optimum level so that banks will not suffer from either lack of liquidity or excess of it.