Work

IJSRPAOP 182|p. Effect of Operational Risk on the Financial Performance of Listed Deposit Money Banks in Nigeria

Year: 2024

Type: article

Abstract: This study investigates the effect of operational risk on the performance of listed deposit money banks in Nigeria. The research adopts ex post facto research design. The target population comprised of the 13 deposit money banks listed on the Nigeria Exchange Limited (NGX) between 2006 - 2021. Secondary data was utilized. The study measures operational risk using the cost-income ratio (CIR), operating cost ratio (OPR), and net interest margin to operating cost ratio (NOR). The study measured financial performance using return on equity (ROE) while the panel data analysis technique and GMM method were used to analyse the data with the aid of STATA Version 15. The result of the study revealed that NOR exerted significant negative effect on the financial performance of listed deposit money banks in Nigeria. The study recommended that management should institutionalize employees regular training and retraining on operational risk awareness to proactively mitigate operational risks

Source: International Journal of Strategic Research in Public Administration and Organizational Process

DOI: 10.48028/iiprds/ijsrpaop.v4.i1.13

Author: Orimisan Akinnagbe

Institution: Nasarawa State University

Language: English

Topic: Banking Sector Performance and Management

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: bronze

OpenAlex ID: W4407373149

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