Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 i Gusau Journal of Accounting and Finance (GUJAF) Vol. 3 Issue 3, October, 2022 ISSN: 2756-665X A Publication of Department of Accounting and Finance, Faculty of Management and Social Sciences, Federal University Gusau, Zamfara State -Nigeria Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 ii © Department of Accounting and Finance Vol. 3 Issue 3 October, 2022 ISSN: 2756-665X A Publication of Department of Accounting and Finance, Faculty of Management and Social Sciences, Federal University Gusau, Zamfara State -Nigeria All Rights reserved Except for academic purposes no part or whole of this publication is allowed to be reproduced, stored in a retrieval system or transmitted in any form or by any means be it mechanical, electrical, photocopying, recording or otherwise, without prior permission of the Copyright owner. Published and Printed by: Ahmadu Bello University Press Limited, Zaria Kaduna State, Nigeria. Tel: 08065949711, 069-879121 e-mail: abupress2013@gmail.com abupress2020@yahoo.com Website: www.abupress.com.ng mailto:abupress2013@gmail.com mailto:abupress2020@yahoo.com http://www.abupress.com.ng/ Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 iii EDITORIAL BOARD Editor-in-Chief: Prof. Shehu Usman Hassan Department of Accounting, Federal University of Kashere, Gombe State. Associate Editor: Dr. Muhammad Mustapha Bagudo Department of Accounting, Ahmadu Bello University Zaria, Kaduna State. Managing Editor: Umar Farouk Abdulkarim Department of Accounting and Finance, Federal University Gusau, Zamfara State. Editorial Board Prof.Ahmad Modu Kumshe Department of Accounting, University of Maiduguri, Borno State. Prof Ugochukwu C. Nzewi Department of Accounting, Paul University Awka, Anambra State. Prof Kabir Tahir Hamid Department of Accounting, Bayero University, Kano, Kano State. Prof. Ekoja B. Ekoja Department of Accounting, University of Jos. Prof. Clifford Ofurum Department of Accounting, University of PortHarcourt, Rivers State. Prof. Ahmad Bello Dogarawa Department of Accounting, Ahmadu Bello University Zaria. Prof. Yusuf. B. Rahman Department of Accounting, Lagos State University, Lagos Stat Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 iv Prof. Suleiman A. S. Aruwa Department of Accounting, Nasarawa State University, Keffi, Nasarawa State. Prof. Muhammad Junaidu Kurawa Department of Accounting, Bayero University Kano, Kano State. Prof. Muhammad Habibu Sabari Department of Accounting, Ahmadu Bello University, Zaria. Prof. Okpanachi Joshua Department of Accounting and Management, Nigerian Defence Academy, Kaduna. Prof. Hassan Ibrahim Department of Accounting, IBB University, Lapai, Niger State. Prof. Ifeoma Mary Okwo Department of Accounting, Enugu State University of Science and Technology, Enugu State. Prof. Muhammad Aminu Isa Department of Accounting, Bayero University, Kano, Kano State. Prof. Ahmadu Bello Department of Accounting, Ahmadu Bello University, Zaria. Prof. Musa Yelwa Abubakar Department of Accounting, Usmanu Danfodiyo University, Sokoto State. Prof. Salisu Abubakar Department of Accounting, Ahmadu Bello University Zaria, Kaduna State. Dr. Isaq Alhaji Samaila Department of Accounting, Bayero University, Kano State. Prof. Fatima Alfa Department of Accounting, University of Maiduguri, Borno State. Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 v Dr. Sunusi Sa'ad Ahmad Department of Accounting, Federal University Dutse, Jigawa State. Dr. Nasiru A. Ka’oje Department of Accounting, Usmanu Danfodiyo University Sokoto State. Dr. Aminu Abdullahi Department of Accounting, Usmanu Danfodiyo University Sokoto, State. Dr. Onipe Adebenege Yahaya Department of Accounting, Nigerian Defence Academy, Kaduna State. Dr. Saidu Adamu Department of Accounting, Federal University of Kashere, Gombe State. Dr. Nasiru Yunusa Department of Accounting, Ahmadu Bello University Zaria. Dr. Aisha Nuhu Muhammad Department of Accounting, Ahmadu Bello University Zaria. Dr. Lawal Muhammad Department of Accounting, Ahmadu Bello University Zaria. Dr. Farouk Adeiza School of Business and Entrepreneurship, American University of Nigeria, Yola. Dr. Bashir Umar Farouk Department of Economics, Federal University Gusau, Zamfara State. Dr Emmanuel Omokhuale Department of Mathematics, Federal University Gusau, Zamfara. State Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 vi ADVISORY BOARD MEMBERS Prof. Kabiru Isah Dandago, Bayero University Kano,Kano State. Prof A M Bashir, Usmanu Danfodiyo University Sokoto, Sokoto State. Prof. Muhammad Tanko, Kaduna State University, Kaduna. Prof. Bayero A M Sabir, Usmanu Danfodiyo University Sokoto, Sokoto State. Prof. Aliyu Sulaiman Kantudu, Bayero University Kano, Kano State. Editorial Secretary Usman Muhammad Adam Department of Accounting and Finance, Federal University Gusau, Zamfara State. Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 vii CALL FOR PAPERS The editorial board of Gusau Journal of Accounting and Finance (GUJAF) is hereby inviting authors to submit their unpublished manuscript for publication. The journal is published in two issues of April and October annually. GUJAF is a double-blind peer reviewed journal published by the Department of Accounting and Finance, Faculty of Management and Social Sciences, Federal University Gusau, Zamfara State Nigeria The Journal accepts papers in all areas of Accounting and Finance for publication which include: Accounting Standards, Accounting Information System, Financial Reporting, Earnings Management, , Auditing and Investigation, Auditing and Standards, Public Sector Accounting and Auditing, Taxation and Revenue Administration, Corporate Governance Issues, Corporate Social Responsibility, Sustainability and Environmental Reporting Issue, Information and Communication Technology Issues, Bankruptcy Prediction, Corporate Finance, Personal Finance, Merger and Acquisitions, Capital Structure, Working Capital Management, Enterprises Risk Management, Entrepreneurship, International Business Accounting and Finance, Banking Crises, Bank’s Profitability, Risk and Insurance Issue, Islamic Finance, Conventional and Islamic Banks and so forth. 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Finally, manuscript should be send to our email address elfarouk105@gmail.com and a copy to our website on journals.gujaf.com.ng mailto:elfarouk105@gmail.com http://www.gujaf.com.ng/ Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 viii PUBLICATION PROCEDURE After receiving a manuscript that is within the similarity index threshold, a confirmation email will be send together with a request to pay a review proceeding fee. At this point, the editorial board will take a decision on accepting, rejecting or making a resubmission of the manuscript based on the outcome of the double-blind peer review. Those authors whose manuscript were accepted for publication will be asked to pay a publication fee, after effecting all suggested corrections and changes made on the manuscript. All corrected papers returned within the specified time frame will be published in that issue. PAYMENT DETAILS Bank: FCMB Account Number: 7278465011 Account Name: Gusau Journal of Accounting and Finance FOR INQUIRY The Head, Department of Accounting and Finance, Federal University Gusau, Zamfara State. elfarouk105@gmail.com +2348069393824 FOR MORE INFORMATION, CONTACT The Editor-in-Chief on +2348067766435 The Associate Editor on +2348036057525 OR visit our website on www.gujaf.com.ng or journals.gujaf.com.ng mailto:elfarouk105@gmail.com mailto:05@gmail.com http://www.gujaf.com.ng/ http://www.gujaf.com.ng/ Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 ix CONTENTS Capital Structure and Firm Financial Performance of Listed Deposit Money Banks in Nigeria: Moderating Effect of Board Financial Literacy Anas Idris Abdulwahab, Hussaini Bala Ph.D, Mansur Lubabah Kwambo Ph.D, & Abubakar Adamu 1 Influence of Socialization On MSME Compliance by Mediating Understanding and Moderating Knowledge of Tax Visits Yayuk Ngesti Rahayu 17 Does International Financial Reporting Standard Narrows Audit Expectation Gap? Musa Ibrahim Dauda, Ibrahim Adagye Dauda, PhD 35 Sustainability Reporting and Financial Performance of Listed Manufacturing Firms in Nigeria Aiyesan, Olabode Olutola Ph.D 49 Firm Attributes and Financial Reporting Timeliness of Listed Consumer Goods Firms in Nigeria Akume James Terkende, Dele Ikese Karim 67 Value Relevance of Accounting Information for Listed Financial Service Firms in Nigeria Kassim Busari, Ishaya Luka Chechet Ph.D, Aliyu Ahmed Abdullahi Ph.D, & Ibrahim Mohammed Ph.D 87 Nigeria Economic Growth and Capital Market Development: Does Contributory Pension Scheme Matter? Akinwumi Ayorinde Olutimi, Toluwa Celestine Oladele Ph.D, &Adeboye Emmanuel Sanmi 101 Audit Committee and Financial Reporting Quality: The Moderating Effect of Board Independence of Listed Deposit Money Banks in Nigeria Kassim Yusha’u Shika, Mark David Kantiyok 117 Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 x Determinants of Financial Performance of Listed Deposit Money Banks in Nigeria Mary Seansu Lazarus, Nurradden Usman Miko Ph.D, & Saifulahi Abdullahi Mazadu Ph.D 140 Human Resource Accounting and Profitability of Listed DepositMoney Banks in Nigeria Ahmad Adamu Ibrahim, Ahmad Rufa’I Adamu, Fatihu Mahmud Alhassan &Muhammad Iliyas Abdulsalam 158 Board Independence, Audit Effectiveness and The Quality of Reported Earnings in The Nigerian Consumer Goods Firms Isah Shittu Ph.D, Misbahu, Abubakar Muhammad 175 Impact of Capital Structure On Financial Performance of Listed Agricultural Companies in Nigeria Ahmad Muhammad Ahmad, Shehu Usman Hassan Ph.D., &Abubakar Abubakar 192 Trade Oriented Money Laundering and Era of Cybersecurity Tax Evasion in Nigeria Oluwayemi Joseph Kayode, Adewole Joseph Adeyinka Ph.D, Adewale Abass Adekunle & Kadiri Kayode Ph.D 205 Effect of Females in the Boardroom on Corporate Sustainability Reporting Salami Suleiman Ph. D, Olanrewaju Atanda Aliu Ph.D 224 Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 140 DETERMINANTS OF FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA Mary Seansu Lazarus Department of Accounting, Kaduna State University, Nigeria +234760974057; marylazarus28@yahoo.com Nurradden Usman Miko Ph.D Department of Procurement and Supply Chain Management, Kaduna State University, Nigeria +2348036691170; nuramiko@kasu.edu.ng Saifulahi Abdullahi Mazadu Ph.D Department of Procurement and Supply Chain Management, Kaduna State University, Nigeria +2348033581343; hanan4dad@gmail.com Abstract This paper seeks to address some factors influencing the financial performance of listed DMBs in Nigeria as the industry has a crucial role to the growth and development of the nation. The major goal of this study was to examine, using secondary data the determinants of financial performance of DMBs with international operating license between 2010 and 2020. Analysis was carried on 8 listed banks using secondary data, correlation and ex-post factor research design. According to the study's findings, all of the indicators have a large impact on the financial performance of the listed financial banks, with the exception of liquidity risk, which has no significant effect. It is therefore recommended that the management of listed DMBs strictly concentrate on investing in lower risky projects, developing and adopting an effective internal control system with clear policies and procedures and to also adhere to CBN directives in maintaining a certain capital adequacy ratio and to checkmate some internal management factors that led to a significant but negative relationship between ROA and LR as the relationship is expected to be significant and positive. This would assist them in achieving their objectives and prevent liquidation and bankruptcy. Keywords; Financial performance, deposit money banks (DMBs), capital adequacy (CA), cash flow (CF), operational efficiency OE), liquidity risk (LR) and returns on assets (ROA). DOI: https://doi.org/10.57233/gujaf. v3i3.185 1. Introduction The overall health of the economies of developing nations depends on the efficiency of their DMBs; as a result, this is a significant area of concern because, in the absence of such efficiency, the entire economy will be illiquid, savings and investments will be lost, and this could lead to further economic stagnation. Financial performance is an indicator of how well a company has performed over mailto:marylazarus28@yahoo.com mailto:nuramiko@kasu.edu.ng mailto:hanan4dad@gmail.com https://doi.org/10.57233/gujaf.%20v3i3.185 Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 141 a specific time period in terms of collecting and allocating funds as well as capital sufficiency, liquidity, solvency, efficiency, leverage, and profitability. A healthy and sound banking sector enhances financial deepening, creates more employment opportunity and promotes financial stability which implies that banking sector should remain firm and continue to provide the needed financial intermediation services for the betterment of the economy. Due to varied degrees of non- compliance with proper operating norms and rules, such as sufficient capital ratios and the Central Bank of Nigeria's inability to satisfy credit criteria, the Nigerian banking sector has seen a number of banks fail. According to the financial stability report, Nigerian banks' financial performance indicators have gotten worse when it comes to dealing with expenditures and other issues. As an illustration, the return on equity (ROE) and return on assets (ROA), which were respectively 14.90% and 2.67% in 2007, fell to 1.8% and 0.16%. IMF (2017) states 2016; Major choices may need to be revised as a result of these developments, which may damage public confidence and cause issues. Bad debt is a common problem for Nigerian banks, which frequently hinders their ability to function successfully financially. Nigerian banks have been facing a lot due to Non-Performing loans (NPL) which usually affects the liquidity available for efficient operation. According to National Bureau of Statistics (NBS) report in June 2019, banks had a Non-Performing loan of 1.4million, meanwhile the CBN prescribed 5% threshold for Non-Performing Loan in the economy but the last time the banking sector met that was in the last quarter of 2015. Since then the figure has only dropped below 10%. Given that banks core business activity is giving out loans and earning interest on them, Nigerian banks failure to do so is a worry and impacted profitability and performance. Poor administration is another factor in certain bad debts (inefficiency). Without adequate collateral, banks provide loans to family members and friends with no interest and no chance of repayment (the loan). According to Umaru Ibrahim, the president of NDIC recently discussed the issue affecting the banking industry—specifically, the development of Polaris Sky Bank of Nigeria and also the instance of the merger between Diamond Bank of Nigeria Plc and Access Bank of Nigeria Plc —in The Guardian magazine (2018) which has been attributed to corporate governance and internal controls. In that regards, this study seek to investigate the determinants of financial performance among the listed DMBs in Nigeria, using operational efficiency as a variable to measure how internal controls and corporate governance influence the financial performance of DMBs. Thereby the study concentrated on all listed DMBs with international and national operational license in Nigeria respectively. Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 142 In order to do this, this study intends to investigate the factors that affect listed investors' financial performance in Nigeria by utilizing performance variables to evaluate the efficiency of internal controls and corporate governance. The study's findings offer solutions to some of the issues and difficulties experienced by investment organizations, as well as the knowledge required by the government to develop and enhance financial management in this nation. It also serves as a standard for additional study. The primary objective of the study is to investigate the elements that influence the financial performance of Nigeria's listed DMBs from 2010 to 2020. The following objectives are specific as well: i. To investigate the impact of capital adequacy on the operating results of Nigeria's listed deposit money banks. ii. To look at the impact of liquidity risk on the monetary performance of Nigeria's listed deposit money institutions. iii. To look at how cash flows affect the financial health of Nigeria's listed deposit money banks. iv. To assess how operational effectiveness affects the monetary performance of Nigeria's listed deposit money institutions. 2. Evidence and Theory Capital Adequacy and Financial Performance: The effect of asset quality on the profitability of commercial banks in Kenya is examined by Cheruiyot (2016). According to the research, Kenyan commercial banks' profitability and asset quality are positively correlated. In a thorough analysis of the factors affecting bank asset quality and profitability from 1997 to 2009, Swamy (2017) discovers that asset quality has a favorable effect on a bank's financial performance. As a result, Lawal and Muturi (2018) looked at the effects of capital adequacy on the operational efficiency of banks in Nigerian from 2007 to 2016 and found that CA has a positive significant effect on operational efficiency. The same effect was discovered by Gadzo, and Asayama (2019), who found that financial leverage had a favorable and substantial impact on financial performance. The financial performance of Nigerian registered trust banks is positively and significantly impacted by their capital availability, Oilwe, and Sil (2019). Resources and Capital. If we examine the connection between the capital adequacy ratio and the efficiency of Nigerian banks, we find that the two have existed for a very long period. Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 143 When Mutumira (2019) examined how Kenyan insurance companies' capital ratios impacted their financial results from 2014 to 2018, she discovered that asset quality had both a positive and a negative impact on those results. Between 2006 and 2013, Ray and Mohapatra (2019) investigated the impact of equity ratio on the financial performance of Indian microcredit enterprises. They discovered that at this time, the equity ratio considerably dropped, which had a detrimental effect on the performance of the microcredit companies. Hewaidy and Alyousef (2018) investigate how private banks and macroeconomic factors affect Kuwaiti banks' capital ratios and demonstrate how capital ratios can impact how effectively banks allocate capital and found that capital adequacy ratio is likely to be more influenced by how banks resources are efficiently utilized than by any other macroeconomic variable. Variable capital adequacy ratios are tied to macroeconomic theory for the purposes of this study; the theoretical underpinnings are based on the trustworthiness and dependability of financial institutions and a constant capital ratio that permits long- term planning. We feel that the equity ratio won't have a substantial impact on the financial performance of Nigeria's listed commercial banks, based on the aforementioned evaluation. Liquidity Risk and Financial Performance; Demirkune (2016) Assessing Liquidity Risk Management's Impact on Financial Performance Using Data from the Turkish Retail Sector Yamin, Farhan, and Tabas' analysis of the relationship between liquidity risk and financial performance found a positive correlation (2019). Results of Company A: The profitability of pharmaceutical companies based on franchise performance is significantly impacted by the current price, according to an empirical study of pharmaceutical companies in India from 2008 to 2017. Nina (2018) Positive Impact of Liquidity and Credit Risk Significant Impact on Bank Profitability and Return on Capital. Impact of Liquidity Risk Management on Financial Performance of Nigeria's ECB 2007-2016. Juan (2015), on the other hand, looked at the performance of financial institutions traded on the Nairobi Stock Exchange and discovered a deteriorating correlation between the latter's performance and that of listed financial institutions in Kenyan Stock Exchange relating to the Nairobi Stock Exchange. Between 2007 and 2016, Charler (2018) looked into how liquidity risk affected bank performance in Ghana. The findings demonstrate a favorable correlation between liquidity and return on assets. In terms of return on capital, there is a negative correlation between the ratio of real estate to total assets (LITK1). Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 144 According to the concept of liquidity volatility, liquidity risk fluctuates. This indicates that the investment bank has a sizable quantity of cash on hand that may be moved to another bank if necessary to generate profits without suffering significant losses. Liquidity risk "has a major influence on the performance of commercial banks listed in Nigeria," as stated in premise 2 of this article. Money (Cash) Flows and Financial Performance The effects of liquidity management on the financial performance of mutual funds in Kenya from 2011 to 2016 were investigated by Soate and Oluoch (2018). Mohammed (2018) investigated the relationship between revenue, operational performance (asset turnover), and financial performance (ROE) of firms listed on the Nigerian Stock Exchange from 2005 to 2014. Additionally, from 2007 to 2016, Oieko (2018) looked on how liquidity management practices affected the performance, liquidity, cash flow, financial performance, and profitability of Nairobi-listed construction firms. They all found that cash flow has a positive relationship with financial performance. When examining the effect of capital on the performance of insurance businesses from 2014 to 2018, Motomira (2019) discovered a favorable influence on liquidity and financial performance in Kenya. Nwakaego, Ikechukwu, and Ifunania (2015) looked at how income affects entrepreneurship in the Nigerian food and beverage sector. He discovered that finance and operating liquidity had a favorable effect on the productivity of businesses in Nigeria's food sector. In their 2016 investigation of this topic in the Nigerian banking industry, Ogbunaia and Ozuma discovered a negative correlation between company performance and liquidity. This suggests that the performance of Nigerian banks is positively impacted by liquidity. BCom (2018) discovered a negative correlation between investment returns and bank financing in Nigeria, and as a result, BCom (2018) analyzed how financial management practices affected the performance of listed manufacturing companies in Nairobi. A statistically significant correlation was shown between equity firms' cash flow management practices and return on assets from 2007 to 2015 by Joan (2015). Studies have demonstrated that the application of monetary policy has a favorable impact on economic expansion. Because there is no significant correlation between revenue and financial performance of listed manufacturing businesses and Nairobi Small Business Iwelo, Ofor, and Onora (2020) of oil and gas enterprises, the study demonstrates a negative association. Within the same time frame, income, cash flows, and stock (2013-2018). The cash flow from operational operations is connected to performance, according to Muraya (2018), who looked at the relationship between cash flow and financial performance of Nairobi-listed investment businesses from 2012 to 2016. According to his study, a company's Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 145 profitability and sustainability are significantly impacted by the budget research firms choose to spend. Use the capital reserve concept as a variable to support cash flow in this lesson. In this context, enough liquidity refers to the bank's liquidity. As a result of the discussion above, hypothesis number three reads, "Liquidity flows do not influence financial performance of banks that have registered their reputation in a banking firm with a major financial impact Nigeria”. Efficiency in Operations and Financial Performance Lotto (2018) examines the influence of capital requirements regulation on bank operating efficiency in Tanzania for the period ranging from 2009 to 2015. The study documents a positive and significant relationship between capital ratio and bank operating efficiency. Additionally, the results show an inverse correlation involving non-performing loans (credit risk) and bank operating efficiency. Aktan and Celik (2018) investigated the impact of liquidity and profitability on the operational efficiency of scheduled commercial banks of Bangladesh for the period of 2011 to 2016, and discovered that the there is significant positive correlation between liquidity and profitability commercial banks in Bangladesh. Asfao (2018) examined financial performance indicators of Ethiopian private banks from 2011 to 2017 using certain banking metrics. Results reveal that management efficiency, bank size and capital adequacy statistically and positively impact significantly on financial performance of the banks under study. However, liquidity management has influence financial performance negatively but significantly. El-Masry and Yousry (2019) investigate the determinants capital adequacy ratio between Islamic and conventional banks in 10 MENA countries for the period ranging from 2009 to 2013. The population is analysis is 38 Islamic banks and 75 conventional banks. The dependent variable for the study is capital adequacy ratio measured by the Basel framework while the independent variables are operational efficiency, profitability, liquidity risk, credit risk, deposits to assets, portfolio risk, bank size and two macro-economic variables (GDP growth rate and average world governance indicators for each country).Findings suggest that capital adequacy ratio in both Islamic banks and conventional banks significantly influence between GDP growth rate, operational efficiency, and bank size. Furthermore, results in Islamic banks indicate a significant relationship among capital adequacy ratio and deposits to assets ratio. Conversely, conventional banks results indicate a positive relationship between capital adequacy ratio and portfolio risk, credit risk, and profitability. The study suggests application of the Islamic Financial Services Board (IFSB) proposal on Islamic banks based in different jurisdictions which will Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 146 improve the Islamic banks efficiency and stability. It will also help achieve standardization of calculation of capital adequacy ratio between Islamic banks. Okeke and Onuora(2018) looked at operational risk management and compliance in banks operating in Edo State. Analyzing the effects of systemic risk was the aim of this study. Human danger, external danger, Systemic and technical risk to the organization's performance. The findings indicate that systemic risk had only a little detrimental effect on the organization's performance over the research period. Regarding technological and systemic risk. The performance of the network during training is positively impacted by external influence in the final influence phase, however this effect is favorable but modest. According to the study's findings, operational risk management significantly but unfavorably affects the performance of the banks that were the subject of the investigation. According to Ndolo (2015), who examined the link between the operating and financial performance of Nairobi listed businesses between 2009 and 2013, performance is correlated with NSE listed companies' return on assets. The performance of a few public and private commercial banks between 2012 and 2017 was examined by Almaihu and Bellet (2019). State banks are superior to private banks, as can be seen. Five chosen public sector banks outperform private sector banks in terms of performance out of seven performance analysis indicators. This has an impact on how commercial banks operate. According to Bhattarai (2019), who looked at how credit risk management affected the financial health of Nepal's commercial banks between 2001 and 2016, management quality indicators, debt ratios, and capital sufficiency had an impact on financial health (return on assets).The influence of operational performance on the financial stability of listed construction businesses in Nigeria from 2009 to 2016 is examined by Ozazefua (2019). Performance takes into account operational expenditure growth, revenue growth, inventory turnover, asset turnover, and long-term profitability. The return on assets and inventories (also known as product S) is the dependent variable in this phrase. The findings indicate that asset turnover has a positive relationship with K value but a negative relationship with labor costs. These outcomes are thus in line with the fluid stability concept. By allowing managers to store stocks held for trade, effective hedging techniques provide liquidity at low/low costs. As a result, Study 4 makes the following assertion based on the aforementioned hypotheses: "The financial performance of a publicly listed commercial bank in Nigeria is not significantly impacted by efficiency." Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 147 3. Methodology A correlational study design was considered appropriate for this study. This sampling technique is suitable for this study because it covers all the population of the study (fifteen deposit money banks) even though the sample size of the study consists of eight depository institutions that have been granted an international banking license in accordance with the regulations. The study used secondary data from audited financial statements of registered banks in Nigeria as a sample of companies over an 11-year period (2010-2020). Data were analyzed using multiple regression methods. The following table describes the formula used to calculate the study variables. Variables Acronyms Variables Measurement Sources Dependent Variable Return On Assets (ROA) Computed as profit before tax divided by total assets Abata, M.A. (2014) Independent variables Capital Adequacy (CA) Tier 1 capital + Tier 2 capital divided by Risk Weighted Assets Hewaidy&Alyousef (2018) Liquidity Risk (LR) Computed as current assets divided by current liabilities Ajibike (2015) Cash Flows (CF) Measured as cash flow from operating activities divided by total asset Mutumira (2019) Operating Efficiency (OE) It is calculated by dividing operating expenses over operating income, El-Ansary, El-Masry, and Yousry (2019) Control Variable Firm’s Size (FSZ) Natural log of total assets Opoku, Adu and Anarfi (2013), Rajha and Alslehat (2014) Source: Compiled by Authors from Prior Literature, 2022. The direct link between the independent variable and the dependent variable is summarized by this model. Capital adequacy (CA), liquidity risk (LR), cash flow (CF), and the correlation between operational efficiency (OE) and return on assets Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 148 are the benchmark model's independent variables. The definition of dependent variables (ROA) is as follows: ROA it = β0 + β1CAit + β2LRit + β3CF it + β4OE it + β5FSZ it + ɐit Where: ROA = Return on Asset it= Firm and time variant β0 = Intercept β1- β4 = Coefficient of the explanatory variable CA = Capital Adequacy (Independent variable) LR = liquidity Risk (Independent variable) CF= Cash flows (Independent variable) OE= Operating efficiency (Independent variable) FSZ= Firm Size (Control Variable) ɐ = error term of the model 4. Result and Discussion The results of numerous tests conducted on the data obtained are presented, examined, and interpreted in this part. It also addresses the key findings of the study, the reliability of the findings, and their policy-related ramifications. Table 4.1 Summary of Descriptive Statistics Variables Mean Std. Dev. Min Max ROA 0.464 0.126 0.23 0.68 CAR 0.254 0.089 0.14 0.57 LR 0.516 0.161 0.18 0.96 CF 0.096 0.080 0.01 0.33 OE 0.655 0.166 0.24 1.32 FSIZE 12.374 0.653 11.86 17.89 Source: STATA 13 Output, 2022 Table 4.1 provides a summary of the descriptive statistics of return rate measured by return on asset (ROA) reveals an average of approximately 46%. The ROA measures the contribution of net income per naira (local currency) invested by the firms’ stockholders; a measure of the efficiency of the owners’ invested capital. The maximum and minimum values of ROA were 0.68 and 0.23respectively. That means the most profitable deposit money banks earned N0.68 of net income from a single N1 of asset investment and the minimum N0.23. The standard deviation of ROA is .126, shows lower variability across deposit money banks. As indicated from Table 4.2.1, the average of capital adequacy is approximately 25%. The standard deviation of 9% indicates wide variation across the sampled Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 149 banks. The minimum and maximum of CAR of 0.14 and 0.57 indicate that some of the selected banks for this study failed to meet the prudential guideline by Central Bank of Nigeria that stipulated minimum of 15% CAR banks that possessed international banking operating license as a buffer to curb any unforeseen risk and uncertainties that may stem from loan extension. The average value of the liquidity measured by liquid risk is approximately 52%. The average value indicates that for each one naira current liability, there is N0.52 liquid asset to meet obligation. The minimum and maximum values are 18% and 96% respectively for the study period. It means that the most liquid listed banks has N0.96 naira to meet obligation which is more than the minimum standard rate of 30% stipulated by CBN in 2017. However, Nigeria listed banks that have less liquid have 18 kobo to meet obligation which is less than the minimum rate. The average value of cash flow is approximately 10% with a correspond standard deviation of approximately 8%, which indicates lower variation across the sampled banks. The minimum and maximum of cash flows are .01 and .33 respectively. The result from Table 4.1, shows that mean of operational efficiency is 0.655, with the standard deviation of 0.166, which indicates wider dispersion in the extent of operating expenses to operating income across the sampled banks. The minimum and maximum are values 0.24 and 1.32 respectively. Bank Size as control variable has the mean value of 12.37 indicating that on average; all the listed deposit money banks in Nigeria have total assets of N12.37 Trillion, while the standard deviation of approximately N0.65 Trillion showing a lower deviation of the total assets of listed deposit money banks in Nigeria. Bank size has minimum and maximum values of N11.86 Billion and N17.89Billion respectively. Table 4.2 Pearson correlations ROA CAR LR CF OE FSIZE Variables ROA 1.000 CAR 0.615 1.000 LR -0.897 -0.462 1.000 CF -0.123 0.244 0.190 1.000 OE 0.131 0.210 -0.060 -0.028 1.000 FSIZE -0.576 0.065 0.636 0.321 0.063 1.000 Source: STATA Output, 2022 Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 150 The result of Pearson Correlation in table 4.2 shows the correlation between explained and explanatory variables of the study. It reveals that there is positive relationship between capital adequacy and operating efficiency with return on asset. It means that these variables move in the same direction with return on asset. However, liquidity risk, cash flows and firm size have negative relationship with return on asset. It indicates that they have move in opposite direction with return on asset. The correlation matrix table shows that there is no presence of possible multicollinearity among the independent variables. This is because the highest relationship among the independent variables is approximately 64%, and this goes below the threshold of 80% as propounded by Gujarati and Porter (2009). Therefore, there is no possible presence of multicollinearity among the independent variables. Regression Result The multiple regression results for the model using linear least squares (OLS) regression are summarized in the regression result. With a value of 0.38 and a p- value of 0.5383, the OLS for the Breuch Pagan/Cook-Weisberg Chi2 elastic inequality was calculated (Additional information on the panel data sample versus baseline analysis appears to best fit the difference). Table 4.3 Summary of OLS Regression Result ROA Coef. t- value p-value Constant 0.193 3.13 0.002 CAR 0.821 10.86 0.000 LR -0.140 -3.79 0.000 CF 0.163 2.64 0.010 OE 0.078 2.25 0.027 FSIZE 0.004 1.18 0.240 R-Square 0.7269 AdjeustedR-Square 0.7102 F-Statistics 3.64 Prob> F 0.0000 HettestProb> Chi2 0.5383 Source: STATA Output, 2022. Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 151 The findings indicate a compounding influence between the dependent and independent factors as well as the independent variables and the independent variables (financial position, liquidity risk, liquidity, and efficiency). The cumulative association between term deposits and financial performance is shown by combined R squared = 0.7102. It revealed a 71% overall connection, demonstrating the significant influence the study's adjustments had on financial success. Other research design-related factors make up the remaining 29%. From 4.4.1. The t-value for the statistical findings is 0.8210, 10.86, and the p-value is 0.000, both of which are significant at the 1% level. The materiality ratio and financial success are positively and significantly correlated. The high capital adequacy ratio of Nigeria's regulated investment banks has increased their financial profitability, according to this. The bank's performance improved as a consequence of higher-than-anticipated liquidity levels and the deployment of provisions to cover unforeseen losses, thus the results were not unexpected. Banks are operational. The findings support those of Lawal, Olucha, Swamy (2017), Ogboro (2019), and Muturi (2018). Therefore, for bank auditors, understanding how money is spent and ensuring that money is utilized properly are crucial components of financial management. The money that is left over is invested profitably. In light of the facts discussed above, we may conclude from this study that the quantity of money received has no bearing on the interest rate at which it is repaid; hence, the hypothesis (hypothesis) was rejected. Stocks that are traded on stock exchanges significantly improve financial returns. Bank: A significance level of 0.000, which is regarded as statistically significant at 1%, supports this. Financial assets and 1404 have a negative relationship with liquidity risk as evaluated by current debt and term debt ratio, with a T value of -3.79 (p = 0.000). 1% threshold of statistical significance. Conservative means that when the capital stock decreases by N1, the financial performance of the sample firms decreases by N0.14. Accordingly, a rise in the sum will have a negative impact on the return on investment. This is because when banks trade in short-term deposits for long-term loans, they are exposed to a higher credit risk. Thus, liquidity risk has an impact on a bank's reputation in addition to its performance. If banks don't make payments on schedule, investors can lose faith in them. In this case, the bank's reputation may be in jeopardy. The findings support earlier studies like Demirgun (2016), Yamin, Farhan, and Tabash (2019). According to studies, this has a detrimental effect on the financial Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 152 performance of well-known worldwide investment firms, which can result in a loss of investor trust, a tarnished reputation, insolvency, bankruptcy, and financial collapse. The second null hypothesis that the bank's financial risk has a significant impact on the profitability of depository companies in Nigeria is rejected by the study's findings, and the corresponding probability value is set at 0.000. 1% significance level. At a 5% level of significance, the regression results indicate a coefficient of 0.1638 and a t-value of 2.64 (p-value 0.010). This demonstrates that cash flow significantly and favorably affects the financial performance of Nigeria's listed commercial banks. The findings demonstrate that banks listed on the Nigerian Stock Exchange have better financial performance when their debt is higher. This outcome is not unexpected given that cash flows enable businesses to grow, transact in assets, seize market opportunities, and provide dividends to shareholders. Users of financial statements may utilize cash flow as a benchmark in addition to accounting rules defined by management when making financial and investment choices. The results of Mutumira (2019) and Oiko (2018), who discovered a favorable association between cash flow and financial success, are consistent with this conclusion. The key takeaway is that income needs to be near to the minimal value in order to utilise cash flow properly and generate a steady profit. This study disproves the third theory, according to which cash flow influences the crucial elements of depository firms in Nigeria. And it had a significant effect. Effects of the Nigerian Registered Investment Bank's incorporation A probability value of 0.010 and a significance level of 5% both point to this. The performance information is shown in Table 4.4.1. The coefficient, t-value, and p-value are 0.0780, 2.25, and 0.027, respectively. The p-value is significant at a 5% level of significance. This suggests a beneficial effect on the chosen organizations' financial performance. This indicates that a 5% growth rate results in a £0.08 improvement in the financial performance of Nigerian banks with registration. The findings do not indicate that internal company issues are the primary cause of the disparate financial statements; rather, the organization has to adapt significantly in accordance with best practices to meet its objectives. Effective resource management results in increased earnings for a corporation. Additionally, businesses may boost efficiency while increasing profitability by minimizing recycling and trash. We employ the top personnel, tools, and company procedures. On the other side, good businesses maintain consistent and superior output. According to Sporta, Gusau Journal of Accounting and Finance, Vol. 3, Issue 3, October, 2022 153 Ngugi, Ngumi, and Nanjala (2018), OPR has a considerable influence on investment compared to Duarte, Brito, and Serio. This conclusion is consistent with their findings (2011). only if it's excellent. enhancing economic results through effective use of natural resources and waste reduction. We employ the top personnel, tools, and company procedures. The fourth quasi-hypothesis, that quality has no discernible effect on the financial performance of listed banks in Nigeria, is thus rejected by this study based on the aforementioned data. The amount is 0.027 and is equal to 5%. 5. Conclusions and Recommendations The study's findings indicate that while liquidity has a detrimental impact on the performance of the time deposit institution, the balance of assets, revenue, and profit do not. The study also recommended the following things: i. Banks should focus their investments on low-risk initiatives, set up efficient internal procedures, and lay down precise rules. To assure security, banks should boost their reserves. The analysis of the bank's foreign revenue is particularly significant since it demonstrates the connection between the return on investment and the factors that affect the bank's overall income. In addition to doing financial management in other areas, we urge banks to seize all available financial possibilities. ii. In order to save expenses, banks must be aware of the requirements of each firm and maintain an adequate level. Banks are urged to diversify their holdings, particularly by providing low-income customers with goods that big banks sometimes ignore. For businesses aiming to generate long-term earnings, banks have to take into account shifting more funds to banks. iii. Therefore, in order to obtain money for ongoing obligations and aid banks in boosting their earnings, we advise banks to assess their financial systems. iv. Participating public banks should prioritize performance enhancement in order to boost the industry's productivity and competitiveness. 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