EconPapers    
Economics at your fingertips  
 

The relevance of value added reporting in assessing the financial soundness of deposit money banks in Nigeria

Anthony Adaramola and Olawale Wale-Awe ()
Additional contact information
Anthony Adaramola: Department of Banking and Finance, Ekiti State University, Nigeria
Olawale Wale-Awe: Department of Banking and Finance, Ekiti State University, Nigeria

Business and Economic Quarterly, 2017, vol. 1, 3-18

Abstract: This study examines the effect of value added reporting on the performance of deposit money banks (DMBs) in Nigeria between 2008 and 2017. It adopts two models for analysis using assets and equity (Statement of Financial Position [SFP] indices) as dependent variables while taking dividends, retained earnings, tax and wages (Statement of Value Added [SVA] indices) as independent variables. The study, using the panel regression analytical technique, reveals that SVA indices exert positive influence on asset and equity of the DMBs. Moreover, it shows that all the independent variables exert significant influence on the performance of the DMBs in the two models. The significant positive relationship between the SVA indices and the SFP indices reveals that the SVA functions in consonance with the SFP. This study therefore recommends that regulators should analyse and review the SVA in assessing the financial soundness of banks and that the SVA should be moved from the later end of the financial statements and upgraded to appear immediately after the SFP. This will accord it the importance it exerts and make it visible to regulators, investors, analysts and directors.

Keywords: Value Added Reporting; Bank Performance; Retained Earnings; Dividends (search for similar items in EconPapers)
JEL-codes: E51 G21 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
https://drive.google.com/open?id=1-_lNioLxXAEj9waH4tDut_gC2VwKQkzL Full text (application/pdf)

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:ris:buecqu:0001

Access Statistics for this article

Business and Economic Quarterly is currently edited by Olaniyi Evans

More articles in Business and Economic Quarterly from International Society for Business & Economics
Bibliographic data for series maintained by Olaniyi Evans ().

 
Page updated 2018-10-06
Handle: RePEc:ris:buecqu:0001