Non-Current Asset and Financial Performance of Listed Deposit Money Banks in Nigeria
Keywords:
Non-Current Asset, Property, Plant & Equipment, Financial Performance, Return on Assets, Return on EquityAbstract
This study examined the relationship between non-current asset and financial performance of listed deposit money banks in Nigeria. The ex post facto research design was adopted for the study with a population of thirteen (13) listed deposit money banks as listed by the Nigerian Exchange Group in 2022. The entire population was used as the sample size of the study using the census approach. Data were retrieved from the annual reports of the selected construction and real estate companies for the period 2017 to 2021. Multiple regression analysis was used to analysed the data gathered with the aid of Stata12 statistical software. The study revealed a negative and insignificant relationship between property, plant and equipment and return on assets of listed deposit money banks in Nigeria. Also, it revealed a positive but insignificant relationship between property, plant and equipment and return on equity of listed deposit money banks in Nigeria. The study recommended that deposit money banks should increase the allocation of resources towards long term investments and funds, and utilize available resources in terms of the Property, Plant and Equipment effectively. Also, Property, Plant and Equipment utilization and productivity needs to be monitored to boost financial performance for shareholders’ satisfaction.
Downloads
References
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 3(17), 99-120.
Charlie, S. S., & Akpan, S. S. (2020). Tangible and intangible asset ratio and performance of deposit money banks in Nigeria. Management Science Review,11(1), 1-17.
Chimaleni, J., Muganda, M., & Musiega, D. (2015). Relationship between sources of business financing and financial performance of small and medium enterprises in Lurambi sub-County. International Journal of Business and Management Invention, 4(7), 35-45.
Chukwu, G. J., & Egbuhuzor, C. A. (2017). Tangible assets and corporate performance: Evidence from the manufacturing industry in Nigeria. Research Journal of Financial Sustainability Reporting, 2(1), 271-277.
Inyiama, O. I., Oluchukwu, U. R., & Nnenna, C. V. (2017). Evaluation of the relationship between assets growth rate and financial performance of manufacturing firms in Nigeria. International Journal of Managerial Studies and Research (IJMSR), 5(10), 63-73.
Kenton, W. (2021). Financial performance. https://www.investopedia.com/terms/f/financialperformance.asp
Mawih, K., & Ani, A.I. (2014). Effects of assets structure on the financial Performance; Evidence from Sultanate of Oman. Journal of US-China Public Administration, 11(2), 170-179.
Mohammed, S. A. (2015). Capital structure and firm’s financial performance: Evidence from Palestine. A master thesis in accounting & finance, Islamic university, Gaza
Mwaniki, G., & Omagwa, J. (2017). Asset structure and financial performance: a case of firms quoted under commercial and services sector at the Nairobi securities exchange, Kenya. Research Journal of Finance and Accounting, 8(4), 192-200.
Ubesie, M. C., & Ogbonna, E. E. (2013). Evaluation of the effect of non-current assets on return on assets of cement manufacturing industry in Nigeria. Journal of Theoretical & Applied Statistics, 3(2), 22-30.
Ullah, H., & Ahmad, W. (2019). Impact of current and non-current assets on the profitability of pharmaceutical companies of Pakistan. International Journal of Management, Accounting and Economics, 6(11), 770-779.
