How is Size Related to Profitability? Post-Consolidation Evidence from Selected Banks in Nigeria
Open Access
- 15 July 2016
- journal article
- Published by Center for Strategic Studies in Business and Finance SSBFNET in International Journal of Finance & Banking Studies (2147-4486)
- Vol. 5 (4), 30-38
- https://doi.org/10.20525/ijfbs.v5i4.592
Abstract
It is theoretically believed that increase in firm size would result to increase in firm profitability. Therefore, this study examines the relationship between size and profitability of six banks in Nigeria after the 2005 consolidation exercise. The measure of profitability is return on assets. Employing the static panel data regression method, the study found that size has an insignificant negative relationship with bank profitability. This study concludes that the 2005 consolidation exercise did not enhance the profitability of the selected banks.Keywords
This publication has 10 references indexed in Scilit:
- Determinants of Banks’ Profitability in a Developing Economy: Evidence From NigeriaOrganizations and Markets in Emerging Economies, 2013
- An empirical assessment of the determinants of bank profitability in Nigeria: Bank characteristics panel evidenceJournal of Accounting and Taxation, 2012
- The Determinants of Commercial Bank Profitability in Sub-Saharan AfricaIMF Working Papers, 2009
- Profitability of Korean banks: Test of market structure versus efficient structureJournal of Economics and Business, 2006
- Bank Consolidation and Performance: The Argentine ExperienceIMF Working Papers, 2004
- Bank Consolidation, Internationalization and Conglomeration: Trends and Implications for Financial RiskIMF Working Papers, 2003
- The Integration of the Financial Services Industry: Where are the Efficiencies?Finance and Economics Discussion Series, 2000
- The efficiency effects of bank mergers and acquisition: A preliminary look at the 1990s dataThe New York University Salomon Center Series on Financial Markets and Institutions, 1998
- The Effects of Megamergers on Efficiency and Prices: Evidence from a Bank Profit FunctionSSRN Electronic Journal, 1997
- Evidence on the (Non) Relationship between Concentration and Profitability in BankingJournal of Money, Credit and Banking, 1985