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Dynamic Portfolio Management and Deposit Money Banks’ Performance in Nigeria: Panel Analysis

Received: 20 June 2023     Accepted: 17 July 2023     Published: 28 October 2023
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Abstract

Financial institutions are economic pivotal that accelerate growth of a nation and serve as inter-connectivity with other sectors of the economy, in the absence of banks; economy may experience slow growth from lack of financial intermediation process. Banks were confronted with risk exposures which is injurious to banking that serves as catalyst for economic growth and development through financial intermediation, active portfolio management becomes inevitable, therefore this study examines the dynamic portfolio management and deposit money banks’ performance in Nigeria spanning over 13years (2009-2021) The data set were collected from the banks’ financial statements which was analysed using panel fully modified least squares and descriptive statistical methods, the normality test was also carried out with probability of 10.2 revealed that the residual is normally distributed. The result revealed that portfolio management has negative association with bank profitability. The challenges of optimal portfolio management and risk exposure is how to explore good risk measurement by banks to achieve optimal returns to the investors and likewise the banks by reducing the inherent risk in portfolio. Achieving vibrant performance by deposit money banks’ aptly demand the adoption of advanced technology by banks into their operations. The combination of Capital Asset Pricing Model with the elements of fundamental analysis methods help business entities to avoid systematic risks and to receive adequate returns.

Published in International Journal of Finance and Banking Research (Volume 9, Issue 5)
DOI 10.11648/j.ijfbr.20230905.13
Page(s) 90-96
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), 2023. Published by Science Publishing Group

Keywords

Risk, Portfolio Management, Bank Performance, Capital Asset Pricing Model

References
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Cite This Article
  • APA Style

    Dele Jacob Ojomolade, Joseph Ifeanyi Ugwulali, Adewale Joshua Adejuwon. (2023). Dynamic Portfolio Management and Deposit Money Banks’ Performance in Nigeria: Panel Analysis . International Journal of Finance and Banking Research, 9(5), 90-96. https://doi.org/10.11648/j.ijfbr.20230905.13

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    ACS Style

    Dele Jacob Ojomolade; Joseph Ifeanyi Ugwulali; Adewale Joshua Adejuwon. Dynamic Portfolio Management and Deposit Money Banks’ Performance in Nigeria: Panel Analysis . Int. J. Finance Bank. Res. 2023, 9(5), 90-96. doi: 10.11648/j.ijfbr.20230905.13

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    AMA Style

    Dele Jacob Ojomolade, Joseph Ifeanyi Ugwulali, Adewale Joshua Adejuwon. Dynamic Portfolio Management and Deposit Money Banks’ Performance in Nigeria: Panel Analysis . Int J Finance Bank Res. 2023;9(5):90-96. doi: 10.11648/j.ijfbr.20230905.13

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  • @article{10.11648/j.ijfbr.20230905.13,
      author = {Dele Jacob Ojomolade and Joseph Ifeanyi Ugwulali and Adewale Joshua Adejuwon},
      title = {Dynamic Portfolio Management and Deposit Money Banks’ Performance in Nigeria: Panel Analysis
    
    	
    },
      journal = {International Journal of Finance and Banking Research},
      volume = {9},
      number = {5},
      pages = {90-96},
      doi = {10.11648/j.ijfbr.20230905.13},
      url = {https://doi.org/10.11648/j.ijfbr.20230905.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20230905.13},
      abstract = {Financial institutions are economic pivotal that accelerate growth of a nation and serve as inter-connectivity with other sectors of the economy, in the absence of banks; economy may experience slow growth from lack of financial intermediation process. Banks were confronted with risk exposures which is injurious to banking that serves as catalyst for economic growth and development through financial intermediation, active portfolio management becomes inevitable, therefore this study examines the dynamic portfolio management and deposit money banks’ performance in Nigeria spanning over 13years (2009-2021) The data set were collected from the banks’ financial statements which was analysed using panel fully modified least squares and descriptive statistical methods, the normality test was also carried out with probability of 10.2 revealed that the residual is normally distributed. The result revealed that portfolio management has negative association with bank profitability. The challenges of optimal portfolio management and risk exposure is how to explore good risk measurement by banks to achieve optimal returns to the investors and likewise the banks by reducing the inherent risk in portfolio. Achieving vibrant performance by deposit money banks’ aptly demand the adoption of advanced technology by banks into their operations. The combination of Capital Asset Pricing Model with the elements of fundamental analysis methods help business entities to avoid systematic risks and to receive adequate returns.
    },
     year = {2023}
    }
    

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  • TY  - JOUR
    T1  - Dynamic Portfolio Management and Deposit Money Banks’ Performance in Nigeria: Panel Analysis
    
    	
    
    AU  - Dele Jacob Ojomolade
    AU  - Joseph Ifeanyi Ugwulali
    AU  - Adewale Joshua Adejuwon
    Y1  - 2023/10/28
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    DO  - 10.11648/j.ijfbr.20230905.13
    T2  - International Journal of Finance and Banking Research
    JF  - International Journal of Finance and Banking Research
    JO  - International Journal of Finance and Banking Research
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    EP  - 96
    PB  - Science Publishing Group
    SN  - 2472-2278
    UR  - https://doi.org/10.11648/j.ijfbr.20230905.13
    AB  - Financial institutions are economic pivotal that accelerate growth of a nation and serve as inter-connectivity with other sectors of the economy, in the absence of banks; economy may experience slow growth from lack of financial intermediation process. Banks were confronted with risk exposures which is injurious to banking that serves as catalyst for economic growth and development through financial intermediation, active portfolio management becomes inevitable, therefore this study examines the dynamic portfolio management and deposit money banks’ performance in Nigeria spanning over 13years (2009-2021) The data set were collected from the banks’ financial statements which was analysed using panel fully modified least squares and descriptive statistical methods, the normality test was also carried out with probability of 10.2 revealed that the residual is normally distributed. The result revealed that portfolio management has negative association with bank profitability. The challenges of optimal portfolio management and risk exposure is how to explore good risk measurement by banks to achieve optimal returns to the investors and likewise the banks by reducing the inherent risk in portfolio. Achieving vibrant performance by deposit money banks’ aptly demand the adoption of advanced technology by banks into their operations. The combination of Capital Asset Pricing Model with the elements of fundamental analysis methods help business entities to avoid systematic risks and to receive adequate returns.
    
    VL  - 9
    IS  - 5
    ER  - 

    Copy | Download

Author Information
  • Department of Accounting, Finance and Taxation, Caleb University, Lagos, Nigeria

  • Department of Accounting, Finance and Taxation, Caleb University, Lagos, Nigeria

  • Department of Management and Accounting, Lead City University, Ibadan, Nigeria

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