Faculty of Arts and Social Sciences

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Author: search.filters.author.Inim Victor EdetEnd date: 2019

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    Effect of Non-Performing Loans on the Financial Performance of Commercial Banks in Nigeria
    (American Center of Science and Education, USA, 2019-02-02) Okoh Gabriel; Inim Victor Edet; Idachaba Odekina Innocent
    The study examined the effect of Non-Performing Loans on the financial performance of commercial banks in Nigeria between the periods of 1985 to 2016. The study employed the multiple regression techniques to analyze data collated from the Central Bank of Nigeria (CBN) statistical bulletin and Nigeria Deposit Insurance Corporation (NDIC) publications for various years. The result of the study shows that Non-Performing Loans to Total Loans ratio (NPL/TLR) and Cash Reserve Ratio (CRR) had statistically negative significant effect on Return on Asset (ROA). These result shows that a high level of non-performing loans would reduce the financial performance of commercial banks in Nigeria. Consequently, the study recommends that the regulatory authorities in Nigeria should create and support an environment where commercial banks in Nigeria can have a strong risk management practices.
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    THE RELATIONSHIP BETWEEN STOCK RETURNS AND INFLATION RATES IN NIGERIA FROM 1995 to 2014
    (International Journal of Economics, Commerce and Management (United Kingdom), 2018-02-02) Njogo, Bibiana O; Inim Victor Edet; Ohiaeri, Nnenna V; Ogboi, C
    This study focused on determining the relationship between inflation rate and stock returns using the Consumer Price Index and the All Share Index on the Nigerian Stock Exchange covering the period 1995 to 2014. The data were analyzed for evidence of co-integration and causality using Error Correction and Granger co-integration model. The Pearson Correlation result shows that, there is significant negative relationship between stock returns and inflation rates in Nigeria. Augmented Dickey Fuller result shows that the series are non-stationary in their level form and are integrated of order one. Johansen co-integration test result shows evidence of co-integration implying that there is a long run relationship between stock market returns and inflation rates in Nigeria. Furthermore, there is significant negative impact of inflation rates on stock market returns in Nigeria. The pair-wise Granger causality test shows that there is a strong unidirectional causality. Also, result from the Error Correction Model suggests that about 43% of the variations in stock returns are accounted for by inflation rates. The study recommends economic reforms that target macroeconomic stability in the country, removal of structural twist, and creation of business-friendly environment that ensures price stability as these will encourage investment in stocks in Nigeria.