International Financial Transactions and Corporate Performance in a Dynamic Financial Market (Evidence from Nigerian Financial Sector)

Suoye Igoni; Akpeghughu; Mevrabor Kingsley

doi:doi:10.11648/j.ijfbr.20170301.12

| Peer-Reviewed

International Financial Transactions and Corporate Performance in a Dynamic Financial Market (Evidence from Nigerian Financial Sector)

Suoye Igoni, Akpeghughu, Mevrabor Kingsley

Published in International Journal of Finance and Banking Research (Volume 3, Issue 1)

Received: 14 December 2016 Accepted: 12 January 2017 Published: 21 March 2017

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

The primary aim of this study is to examine the relations between international financial transactions and corporate performance in a dynamic financial market within the banking industries using Annual Time Series Data of the Variables. The annual time series data were sourced majorly from central bank of Nigeria statistical bulletin. This study covers 33 years period between 1980-2013. Econometric techniques of ordinary least square (OLS) Augmented were employed in the analysis. Return on investment was used as a measure of corporate performance. The international financial transactions measure includes (growth of cross-border credits to total deposit money banks assets, growth of non oil export to deposit money bank asset, cross border banking claims to total deposit money bank assets and exchange rate) as independent variables. The results indicate that corporate performance in a financial market which is measured by return on Investment has a positive and significant relationship on growth of cross boarder credit to total deposit money banks assets, growth of non-oil export to deposit money banks assets, cross boarder banking claims to total deposit money bank assets and ratio of exchange rate of Naira to Dollar. Consequently, it is recommended that there is every need for the deposit money banks management to strengthen their international financial transactions management scope as the indicators studied largely exhibit strong influence on the performance of deposit money banks.

Published in	International Journal of Finance and Banking Research (Volume 3, Issue 1)
DOI	10.11648/j.ijfbr.20170301.12
Page(s)	13-21
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Corporate Performance, International Financial Transaction, Non-oil Export, Cross Boarder Banking Claims

References

[1]	Abebefe, H. A. (1995),“The structure of Nigeria’s external trade”, Bullion, 19 (4).
[2]	Almeida, H., Campello, M., Larajerria, B., and Weisbenner, (2009). Corporate debt maturity and the real effect of the 2007 credit crises. Unpublihed working paper, University of Illcions.
[3]	AlNessor, M., (2008). The impact of financial crises on capital markets, trade and economics Arabic. Symposium Global Financial Crises and its implications for financial markets and the Arab Economy.” American Jornal 14 (8), 128–134.
[4]	Anouze, A. L. (2007). “The Efficiency of banks performance in Gulf Region before, during and after crisis (Financial and Political)”8th Global Conference on Islamic Economics and Finance.
[5]	Ashamu, S. O and Abiola, J., (2012). “The impact of Global Financial Crises on the banking sector in Nigeria.” British Journal of Arts and social sciences, Vol 4 (2), 314–329.
[6]	Basel Committee on Banking Supervision (2009). “Global frame work for liquidity risk measurement, standards and monitoring,” consultative document.
[7]	Basel Committee on Banking Supervision (BCBS) (2010c). “Base lIII: Global framework for liquidity risk measurement, standards and monitoring,”http://bis.org/publ/bcbs188.pdf.
[8]	Beltratti, A., Stulz, R., (2009). Why did some banks perform better during the credit crisis? Across-country study of the impact of governance and regulation, ECG I’s Finance Working Paper No. 254/2009.
[9]	Berger, A. N and Christa, H. S. (2010) Bank liquidity Creation, Monetary Capel, J. J., 2009, ‘How does cross-border collateral affect a country’s central bank and prudential supervisor, ”DNB Occasional Studies, Vol. 7, No. 1, http://www.dnb.nl/binaries/Occasional%20Studies%20Vol%207_tcm46-220381.pdf.
[10]	Brown, M. R. de Haas, (2012). “Global Bank, Global Shock Transmission and Economic Growth: Evidence from the Crisis,” IMF Economic Review 59 (1), 41-76.
[11]	Cornett, M., McNutt, J. and Tehranian, H., (2010). “The financial crisis, internal corporate governance, and the performance of publicly-traded U.S. bank holding companies,”unpublished working paper, Bost on College.
[12]	Demirgüç-Kunt, A. and Huizinga, H. (2001). Financial Structure and Bank Profitability. In Financial Structure and Economic Growth: A Cross-Country Comparison of Banks, Markets, and Development, Cambridge, MA: MIT Press. Retrieved on March 10, 2005 from http://www.econ.world bank.org/docs/1185.pdf.
[13]	Dickey, D., & Fuller, W., (1981).“Likelihood ratio statistics for autoregressive time series with a unit root.”Econometrica1 7 (49), 1057–1072.
[14]	Dietrich, A., Wanzenried, G., (2011). “Determinants of bank profitability before and during the crisis: Evidence from Switzerland,” J. Int. Finance. MarketsInst. Money, doi:10.1016/j.intfin.2010.11.002.
[15]	Fayez, J. S., and Alnajar, J., (2009). The Global Financial crises and its impact on the financial companies listed in Amman Stock Exchange.
[16]	Global Monetary Fund (IMF), (2010). ‘Global Financial Stability Review’, http://www.imf.org/External/Pubs/FT/GFSR/2010/02/pdf/text.pdf ISSN: 2046-9578, Vol.4No.2(2012).
[17]	Halkos, G., Simonson, D., (2004). Efficiency measurement of Greek Commercial banks with the use of financial ratios. A data envelope analysis approach. Management Accounting Research 15 (2), 201–224.
[18]	Halland, O. and Vierra, R. (2005). “Economic liberalization, and exchange management and foreign capital.”IMF working paper.
[19]	Jiwan, W. (2011). Global Liquidity, Cross Boarder Capital and Economic Growth in the Developing Countries. Global Journal of Economics and Finance, 5 (21), 185-219.
[20]	Khamis. M (2010). “The Impact of the Global Financial Crisis on the GCC Region: Lessons and Reform Priorities, Round table on Effective and Efficient Financial Regulation in the MENA Region,” December 6-7, 2010 Doha, Qatar, Global Monetary Fund.
[21]	Kityota, H., (2009). Confronting global financial crises. Bank efficient, profitability and banking system in Africa. A paper prepared for the African economic conference on fostering development of financial and economic crisis. Addis Ababa.
[22]	Lacewell, S. K., (2003). Do efficiency institutions score well using ratio analysis. An examination of Commercial banks in the 1990s. Journal of commercial banking and finance 2, (5) 17–33.
[23]	McClean, H., and Shrestha, W. (2009). Global Financial Crisis and Economic Growth of Developing Nations. American Journal of economics. 7 (30), 155-195.
[24]	Onoh, J. K., (2007). Dimensions of Nigerian’s Monetary and Fiscal Policy. Astra Meridien, Aba, Enugu, Lagos.
[25]	Onwe, O. J. (2013), “Trade balances and economic progress in Nigeria: Analysis of the oil and non-oil subsectors”, International Journal of Business and Social Science, 4 (8).
[26]	Osuntogun, A., Oramah, B. O. and Edordu, C. C (1997), “Potentials for diversifying Nigeria’s non-oil exports to non-traditional markets”, AERC Research Paper, No. 68.
[27]	Ree, J. K., (2011). Impact of the global crisis on the banking sector soundness in Asian Low-income countries. IMF working paper.
[28]	Sangeetha. J, (2012) Financial Crisis and Omani Commercial Banks: A Performance Review, European Journal of Business and Management, www.iiste.org ISSN2222-1905 (Paper) ISSN2222-2839 (Online) Vol 4, No. 8, 2012.
[29]	Seiford, L. M., & Zhu, J., (1999). Profitability and marketability of the top 55 U.S Commercial banks. Management services, 45 (9), 1270–1288.
[30]	Shafique. A, Faheem. M. and Abdullah. J, (2012). Impact of Global Financial Crises on the Islamic Banking System. Arabian Journal of Business and Management Review (OMAN Chapter) Vol. 1, No. 9; April 2012.
[31]	Samad, A., (2004). Bahraim Commercial banks’ performance during 1994–2001. Credit and financial Management Review 10 (1), 33–40.
[32]	Tarawneh, M. (2006). A Comparison of Financial Performance in the Banking Sector: Some Evidence from Omani Commercial Banks”. Global Research Journal of Finance and Economics 3, pp 103-112.
[33]	Webb, R. M., (2003). Levels of Efficiency in UK retail banks: ADEA window analysis. Global Journal of the economics of business 10 (3), 305-322.
[34]	Xiao, Y., (2009). French banks Amid the global financial crises. IMF working paper. WP/09/201.
[35]	Yeh, Q., J., (1999). The application of data envelopment analysis in conjunction with financial ratios for bank performance evaluation. Journal of the operational research society.47, 980–988.

Cite This Article

Plain Text BibTeX RIS

APA Style

Suoye Igoni, Akpeghughu, Mevrabor Kingsley. (2017). International Financial Transactions and Corporate Performance in a Dynamic Financial Market (Evidence from Nigerian Financial Sector). International Journal of Finance and Banking Research, 3(1), 13-21. https://doi.org/10.11648/j.ijfbr.20170301.12

Copy | Download

ACS Style

Suoye Igoni; Akpeghughu; Mevrabor Kingsley. International Financial Transactions and Corporate Performance in a Dynamic Financial Market (Evidence from Nigerian Financial Sector). Int. J. Finance Bank. Res. 2017, 3(1), 13-21. doi: 10.11648/j.ijfbr.20170301.12

Copy | Download

AMA Style

Suoye Igoni, Akpeghughu, Mevrabor Kingsley. International Financial Transactions and Corporate Performance in a Dynamic Financial Market (Evidence from Nigerian Financial Sector). Int J Finance Bank Res. 2017;3(1):13-21. doi: 10.11648/j.ijfbr.20170301.12

Copy | Download

@article{10.11648/j.ijfbr.20170301.12,
  author = {Suoye Igoni and Akpeghughu and Mevrabor Kingsley},
  title = {International Financial Transactions and Corporate Performance in a Dynamic Financial Market (Evidence from Nigerian Financial Sector)},
  journal = {International Journal of Finance and Banking Research},
  volume = {3},
  number = {1},
  pages = {13-21},
  doi = {10.11648/j.ijfbr.20170301.12},
  url = {https://doi.org/10.11648/j.ijfbr.20170301.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20170301.12},
  abstract = {The primary aim of this study is to examine the relations between international financial transactions and corporate performance in a dynamic financial market within the banking industries using Annual Time Series Data of the Variables. The annual time series data were sourced majorly from central bank of Nigeria statistical bulletin. This study covers 33 years period between 1980-2013. Econometric techniques of ordinary least square (OLS) Augmented were employed in the analysis. Return on investment was used as a measure of corporate performance. The international financial transactions measure includes (growth of cross-border credits to total deposit money banks assets, growth of non oil export to deposit money bank asset, cross border banking claims to total deposit money bank assets and exchange rate) as independent variables. The results indicate that corporate performance in a financial market which is measured by return on Investment has a positive and significant relationship on growth of cross boarder credit to total deposit money banks assets, growth of non-oil export to deposit money banks assets, cross boarder banking claims to total deposit money bank assets and ratio of exchange rate of Naira to Dollar. Consequently, it is recommended that there is every need for the deposit money banks management to strengthen their international financial transactions management scope as the indicators studied largely exhibit strong influence on the performance of deposit money banks.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - International Financial Transactions and Corporate Performance in a Dynamic Financial Market (Evidence from Nigerian Financial Sector)
AU  - Suoye Igoni
AU  - Akpeghughu
AU  - Mevrabor Kingsley
Y1  - 2017/03/21
PY  - 2017
N1  - https://doi.org/10.11648/j.ijfbr.20170301.12
DO  - 10.11648/j.ijfbr.20170301.12
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 13
EP  - 21
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20170301.12
AB  - The primary aim of this study is to examine the relations between international financial transactions and corporate performance in a dynamic financial market within the banking industries using Annual Time Series Data of the Variables. The annual time series data were sourced majorly from central bank of Nigeria statistical bulletin. This study covers 33 years period between 1980-2013. Econometric techniques of ordinary least square (OLS) Augmented were employed in the analysis. Return on investment was used as a measure of corporate performance. The international financial transactions measure includes (growth of cross-border credits to total deposit money banks assets, growth of non oil export to deposit money bank asset, cross border banking claims to total deposit money bank assets and exchange rate) as independent variables. The results indicate that corporate performance in a financial market which is measured by return on Investment has a positive and significant relationship on growth of cross boarder credit to total deposit money banks assets, growth of non-oil export to deposit money banks assets, cross boarder banking claims to total deposit money bank assets and ratio of exchange rate of Naira to Dollar. Consequently, it is recommended that there is every need for the deposit money banks management to strengthen their international financial transactions management scope as the indicators studied largely exhibit strong influence on the performance of deposit money banks.
VL  - 3
IS  - 1
ER  -

Copy | Download

Author Information

Suoye Igoni

Department of Finance and Banking, University of Port Harcourt, Port-Harcourt, Nigeria
Akpeghughu

Department of Finance and Banking, University of Port Harcourt, Port-Harcourt, Nigeria
Mevrabor Kingsley

Department of Finance and Banking, University of Port Harcourt, Port-Harcourt, Nigeria

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Suoye Igoni, Akpeghughu, Mevrabor Kingsley. (2017). International Financial Transactions and Corporate Performance in a Dynamic Financial Market (Evidence from Nigerian Financial Sector). International Journal of Finance and Banking Research, 3(1), 13-21. https://doi.org/10.11648/j.ijfbr.20170301.12

Copy | Download

ACS Style

Suoye Igoni; Akpeghughu; Mevrabor Kingsley. International Financial Transactions and Corporate Performance in a Dynamic Financial Market (Evidence from Nigerian Financial Sector). Int. J. Finance Bank. Res. 2017, 3(1), 13-21. doi: 10.11648/j.ijfbr.20170301.12

Copy | Download

AMA Style

Suoye Igoni, Akpeghughu, Mevrabor Kingsley. International Financial Transactions and Corporate Performance in a Dynamic Financial Market (Evidence from Nigerian Financial Sector). Int J Finance Bank Res. 2017;3(1):13-21. doi: 10.11648/j.ijfbr.20170301.12

Copy | Download

@article{10.11648/j.ijfbr.20170301.12,
  author = {Suoye Igoni and Akpeghughu and Mevrabor Kingsley},
  title = {International Financial Transactions and Corporate Performance in a Dynamic Financial Market (Evidence from Nigerian Financial Sector)},
  journal = {International Journal of Finance and Banking Research},
  volume = {3},
  number = {1},
  pages = {13-21},
  doi = {10.11648/j.ijfbr.20170301.12},
  url = {https://doi.org/10.11648/j.ijfbr.20170301.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20170301.12},
  abstract = {The primary aim of this study is to examine the relations between international financial transactions and corporate performance in a dynamic financial market within the banking industries using Annual Time Series Data of the Variables. The annual time series data were sourced majorly from central bank of Nigeria statistical bulletin. This study covers 33 years period between 1980-2013. Econometric techniques of ordinary least square (OLS) Augmented were employed in the analysis. Return on investment was used as a measure of corporate performance. The international financial transactions measure includes (growth of cross-border credits to total deposit money banks assets, growth of non oil export to deposit money bank asset, cross border banking claims to total deposit money bank assets and exchange rate) as independent variables. The results indicate that corporate performance in a financial market which is measured by return on Investment has a positive and significant relationship on growth of cross boarder credit to total deposit money banks assets, growth of non-oil export to deposit money banks assets, cross boarder banking claims to total deposit money bank assets and ratio of exchange rate of Naira to Dollar. Consequently, it is recommended that there is every need for the deposit money banks management to strengthen their international financial transactions management scope as the indicators studied largely exhibit strong influence on the performance of deposit money banks.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - International Financial Transactions and Corporate Performance in a Dynamic Financial Market (Evidence from Nigerian Financial Sector)
AU  - Suoye Igoni
AU  - Akpeghughu
AU  - Mevrabor Kingsley
Y1  - 2017/03/21
PY  - 2017
N1  - https://doi.org/10.11648/j.ijfbr.20170301.12
DO  - 10.11648/j.ijfbr.20170301.12
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 13
EP  - 21
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20170301.12
AB  - The primary aim of this study is to examine the relations between international financial transactions and corporate performance in a dynamic financial market within the banking industries using Annual Time Series Data of the Variables. The annual time series data were sourced majorly from central bank of Nigeria statistical bulletin. This study covers 33 years period between 1980-2013. Econometric techniques of ordinary least square (OLS) Augmented were employed in the analysis. Return on investment was used as a measure of corporate performance. The international financial transactions measure includes (growth of cross-border credits to total deposit money banks assets, growth of non oil export to deposit money bank asset, cross border banking claims to total deposit money bank assets and exchange rate) as independent variables. The results indicate that corporate performance in a financial market which is measured by return on Investment has a positive and significant relationship on growth of cross boarder credit to total deposit money banks assets, growth of non-oil export to deposit money banks assets, cross boarder banking claims to total deposit money bank assets and ratio of exchange rate of Naira to Dollar. Consequently, it is recommended that there is every need for the deposit money banks management to strengthen their international financial transactions management scope as the indicators studied largely exhibit strong influence on the performance of deposit money banks.
VL  - 3
IS  - 1
ER  -

Copy | Download