ABSTRACT
This study examined Financial
Derivatives and Financial Performance of listed Commercial Banks in Nigeria. A
period of seven (7) years (2013 to 2019) was covered and ex-post facto research
design was adopted. The study employed all fourteen (14) listed commercial
banks in Nigeria as at 31st December, 2019. Return on Assets (ROA), Return on Equity
(ROE), Earnings per Share (EPS) and Return on Capital Employed (ROCE) were used
as measures of performance while Financial Derivative Assets (FDA), Financial Derivative
Liabilities (FDL), Financial Derivative Trading Income (FDTI) and Financial Derivative
Disclosure (FDD) were measures of financial derivatives as well as firm age, firm growth and leverage as controls for the
regression model. However, to test the hypotheses of the study, multiple
regression analyses technique was employed using E-view, version 11. Results
revealed that FDA and FDTI has a positive
significant (5%) effect on Earnings per share, FDL and FDD has a negative
significant effect on return on assets while FDA, FDL, FDTI and FDD have no significant effect on return
on equity and return on capital employed. The
study concludes that FDL and FDD have a significant
effect on return on assets of listed commercial banks in Nigeria while FDA
and FDTI have a significant effect on earnings per share of listed commercial
banks in Nigeria. The study therefore recommends that corporate managers especially those within the banking sector
should engage or drive policies that will promote the use of derivatives. This
will engender the banks holdings of derivative assets and derivative trading
income to increase their earnings that will in the long run enhance the
performance of Commercial Banks in Nigeria. Financial
Regulators should organize conferences and symposia for commercial banks in
order to enhance their knowledge base on the effective use of financial market
derivatives.
MICHAEL, U (2023). Financial Derivatives And Financial Performance Of Listed Commercial Banks In Nigeria. Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/financial-derivatives-and-financial-performance-of-listed-commercial-banks-in-nigeria-7-2
UNIVERSITY, MICHAEL. "Financial Derivatives And Financial Performance Of Listed Commercial Banks In Nigeria" Mouau.afribary.org. Mouau.afribary.org, 20 Jun. 2023, https://repository.mouau.edu.ng/work/view/financial-derivatives-and-financial-performance-of-listed-commercial-banks-in-nigeria-7-2. Accessed 31 Oct. 2024.
UNIVERSITY, MICHAEL. "Financial Derivatives And Financial Performance Of Listed Commercial Banks In Nigeria". Mouau.afribary.org, Mouau.afribary.org, 20 Jun. 2023. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/financial-derivatives-and-financial-performance-of-listed-commercial-banks-in-nigeria-7-2 >.
UNIVERSITY, MICHAEL. "Financial Derivatives And Financial Performance Of Listed Commercial Banks In Nigeria" Mouau.afribary.org (2023). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/financial-derivatives-and-financial-performance-of-listed-commercial-banks-in-nigeria-7-2