UNSYSTEMATIC RISK AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
DOI:
https://doi.org/10.67199/8k96ep42Keywords:
Deposit Risk, Liquidity Risk, Capital Adequacy Risk, Financial Performance, Portfolio TheoryAbstract
The study investigated the effect of unsystematic risk on financial performance of listed deposit money banks in Nigeria for the period 2012 to 2024. Secondary data was extracted from the financial statements of the thirteen banks that make up the population of the study. Unsystematic risk as an independent variable of the study was proxied by deposit risk, liquidity risk and capital adequacy risk, while return on equity was used to represent financial performance as dependent variable of this study. This study adopted generalized least square random effect multiple regression technique in analyzing the data. The findings of the study show liquidity risk and capital adequacy risk has positive significant influence on financial performance. This study recommended that banks’ management should continue to manage their liquidity risk and capital adequacy risk in their banks efficiently and effectively in line with the directive of regulatory authorities, since the findings of the study show liquidity risk and capital adequacy risk have a significant positive impact on banks’ financial performance.
Keywords: Deposit Risk, Liquidity Risk, Capital Adequacy Risk, Financial Performance, Portfolio Theory.
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