IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 9 NO. 2 2023
DOI: https://doi.org/10.56201/ijbfr.v9.no2.2023.pg72.88

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Management Quality and Commercial Banks Liquidity: A Panel Data Analysis of Quoted Commercial Banks in Nigeria

LENYIE, Leesi and Omubo - Pepple Stella Nathan

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Abstract

This study examined the relationship between management quality and the liquidity of quoted commercial banks in Nigeria. The objective was to examine the extent to which management quality relates to commercial banks liquidity. 13 quoted commercial banks were selected from the population, panel data was sourced from financial statement and annual reports of the quoted commercial banks from 2016-2020.Panel ordinary least square methods were used to examine the relationship the dependent and the independent variables. Adjusted R2, t-test, probability coefficient, Durbin Watson statistic, F-statistic were used to examine the extent to which management quality relate commercial banks liquidity. Liquidity of commercial banks was measured by percentage of deposit to total loans and advances while management quality were measured by profitability growth, deposit growth, loans growth, assets growth and earnings growth. The study found that that 51.3 percent variation on liquidity of the commercial banks is traceable to variation on the independent variables in the study. The f-statistics and probability validate the reliability of the model. The Durbin-Watson statistics proved the presence of negative serial autocorrelation. The regression coefficient found that profitability growth and earnings growth have negative effect on liquidity of the commercial banks while assets growth, deposit growth and lending growth have positive effect on liquidity of commercial banks in Nigeria. The study recommends that quoted commercial banks in Nigeria should implement management culture amongst other stakeholders so as to enable smooth implementation of quality management practices.

keywords:

Management Quality, Commercial Banks, Liquidity, Panel Data Analysis, Quoted Commercial Banks

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