Effective Internal Control Systems and Return on Assets of Deposit Money Banks in Nigeria

Olateju Dolapo Aregbesola, Seseyon Deborah Oladejo, Olatunde Wright and Sunday Olusola Omojola
Additional contact information
Olateju Dolapo Aregbesola: Bowen University Iwo, Osun State, Nigeria
Seseyon Deborah Oladejo: Bowen University Iwo, Osun State, Nigeria
Olatunde Wright: Bowen University Iwo, Osun State, Nigeria
Sunday Olusola Omojola: Bowen University Iwo, Osun State, Nigeria

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 3s, 3338-3347

Abstract: This article investigated the impact of effective internal control systems on Return on Asset (ROA) of deposit money banks in Nigeria. Internal controls are crucial for ensuring the accuracy and reliability of financial reporting, compliance with laws and regulations and the overall operational efficiency of financial institutions. The study adopted an ex-post facto research design. Secondary data were extracted from the audited financial statement of 10 deposit money banks, listed on the Nigerian Exchange Group (NGX). Data were subjected to the descriptive statistics (mean, median, mode and standard deviation) and inferential statistics (fixed effect regression analysis).Results from the analysis revealed that internal control system affects the return on assets significantly, which means that any slight reduction in the internal control system will affect the rate at which their assets will generate revenue to the banks negatively especially when the risks that may arise is not properly assessed and mitigated by the risk management committee. The paper concludes that there is a statistically significant relationship between the two variables, it can be inferred that there is an established connection between the internal control system and the financial performance of the sampled deposit money banks in Nigeria at a significant level.

Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijriss/ ... sue-3s/3338-3347.pdf (application/pdf)
https://rsisinternational.org/journals/ijriss/arti ... ey-banks-in-nigeria/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:8:y:2024:i:3s:p:3338-3347

Access Statistics for this article

International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan

More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS)
Bibliographic data for series maintained by Dr. Pawan Verma ().