Department of Finance

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Determinants of Capital Adequacy in the Banking sub-sector of the Nigeria Economy: Efficacy of Camels.(A Model Specification with Co-Integration Analysis)
(HRMARS, 2011-09-15) Williams, Harley Tega
This study investigates the impact of banks characteristics, financial structure and macroeconomic indicators on banks Capital base in the Nigerian banking industry. The study does not account for ratio analysis in the computation of capital adequacy but rather it examines the determinant of Capital adequacy in Nigeria during the period 1980 – 2008 within an error correction framework. Co-integration technique revealed that economic indicators such as rate of inflation, real exchange rate, demand deposits, money supply, political instability, return on investment are most robust predictors of the determinants of capital adequacy in Nigeria. After the global credit crunch capital adequacy, being critical for banks, led the study to examine the relationship between bank capital base and macroeconomics variables. This implies that political stability may reduce financial distress and bankruptcy why Foreign investment will affect Banks capital in most developing economy in the period of financial crisis . However, the study also establishes that there is a negative relationship between inflation and banks capital base as inflation erode banks capital in most developing economy. This simply means that Nigerian government should regulate investment policy why banks regulators should strive to keep inflation rate at a minimum level, if possible below 5% for them to be more efficient so as to be globally competitive.
An Empirical Analysis of Capital Adequacy in the Banking Sub-Sector of the Nigeria Economy
(International Journal of Economics and Finance, 2012-05-05) Williams, Harley Tega
The paper sets out to examine the impact of capital adequacy in the banking sub-sector and the growth of Nigeria economy. It specifically seeks to ascertain the effect of bank capital base and macroeconomic variables. Nigeria’s data set from CBN statistical bulletin (2009) during the period 1980-2010 was used. It employed the error correction framework and co-integration techniques to test the relationship between bank capital base and macroeconomics variables. This implies that political stability may reduce financial distress and bankruptcy why foreign investment will affect Banks capital in most developing economy in the period of financial crisis. However, the study also establishes that there is a negative relationship between inflation and banks capital base as inflation erode banks capital in most developing economy. This simply means that Nigerian government should regulate investment policy why banks regulators should strive to keep inflation rate at a minimum level, if possible below 5% for them to be more efficient so as to be globally competitive.
An Empirical Analysis of Effective Customers Service on Nigeria Banks Profitability. (A Queuing and Regression Approach)
(Asia Economic and Social Society, 2014-09-25) Williams, Harley Tega
This study investigates the impact of various elements of customer services adopted by some Nigerians banks to improve bank profitability in the Nigerian banking industry. It examines the mean profit and how each of the customer service elements adopted by the banks has impacted on the banks profitability and the level of impact of each of them. The study applies a pure quantitative analysis using five big Nigerian banks as a case study within a framework called the Queuing technique. Queuing Analysis revealed that the average time a bank customer spends waiting in the queue to carryout banking transaction has a linear relationship with the bank profitability. After the 2004 Nigerian banks consolidation and the recent failure of banks, leads to the study that examines the effectiveness of customer service on banks profitability. We found out that poor customer service management in banks may reduce banks profitability and thus may cause bank financial distress. However, the study also establishes that there is an inverse relationship between banks customers services and profitability in Nigeria banks.
An Empirical Analysis of Pre and Post Initial Public Offering (IPO) Performance
(International Journal of Current Research, 2016-05-13) Williams, Harley Tega
This study investigates the impact of pre and post Initial Public Offering (IPO) Performance on selected firms. The data analysis ranges from 1 to 300 observations within a model specification framework on a Multivariate methodology. Two models were formulated to carry out the analysis on an Eview7 statistical package. The objective was to find out the position of the selected firms before and after IPO has been initiated and do a comparative analysis. From the analysis, Model two was seen as the best model to carry out a research of this nature because the independent variables such as age of company, total asset, ownership concentration, CEO stockholdings, average return on capital employed and the industry in which the company operates are regarded as the factors that influences IPO performance. The result shows that all the variables are positive showing a direct relation with IPOR. The coefficient of determination shows 52.9% indicating that the model is good fit and the F- statistics of 54.8558 shows that all the variables in the model are statistically significant. However, the Durbin Watson statistics shows the presence of positive serial correlation. The study therefore recommend that firms should uphold the principles of good corporate governance and also ensure they disclose relevant information to the public in terms of CEO stockholdings in the company so as to build public confidence and to create and maintain good business image.
An Empirical Investigation of the Determinants of Foreign Exchange in Nigeria
(Archives of Business Research, 2018-06-25) Williams, Harley Tega
The determinants of foreign exchange rate was carried out using time series data from 1986 to 2016.This analysis attempted to find out the casual relationship between external reserves and foreign exchange rate in the Nigerian context by looking at the impact of foreign exchange rate on external reserves from 1986 to 2016 and after the financial crisis. The Nigeria economy is a mono economy where the import is stronger than export making the Nigeria naira irrelevant in the global market. This prompted the researchers to undertake this study so as to establish a linear relationship between external reserves and other variables likely to affect foreign exchange rate. The theoretical framework of production and risk aversion and model specification variables applied in this study may have been overlooked by previous studies. The study found out that the Nigerian external reserves (RS= 0.000139) positively affect foreign exchange rate in a normal economic situation and negatively affect foreign exchange rate in a period of global financial crisis. In the period of global financial crisis, the study recommends that the Nigeria government can increase her export to strengthen her currency so as to make her currency globally competitive. Furthermore, the external reserve is just a backup plan to cushion the effect of financial crisis and international liability in terms of balance of payment problem not as a core determinant of foreign exchange rate in Nigeria.
An Empirical Investigation of the Impact of Dividend Policy on Performance of Quoted Companies in a Developing Economy
(Singaporean Journal of Business, Economics and management studies (SJBEM), 2017-11-22) Williams, Harley Tega
This study empirically investigate the impact of dividend policy on performance of quoted companies in a developing economy. The objective of the study was to empirically test some ratio variables likely to affect dividend policy on a multivariate methodology. The sample size of this study was twenty quoted firms in a developing nation actively operating within 2005 to 2016 in the stockmarket. It was deduced that there is a significant positive impact of dividend pay-out ratio (DPS) on return on asset of .176. One percent increase in dividend payout ratio will lead to a corresponding increase on the average of 0.176 in return of asset (ROA). From our analysis, we found out that the coefficient of determination (R2) captured a significant portion of the models applied in the study but model two become stronger. We also found out that there is a positive relationship between ROE and DPS of .540 and the slope of the regression line is .129. This indicate that one percent increase of DPS will lead to a corresponding increase on ROE. The study there concluded that profit after tax should be considered sensitive in relation to dividend payment.
An Empirical Investigation of the Impact of Exchange Rate Fluctuations on the Performance of Selected Listed Firms in Nigeria
(Journal of Business Management and Economic Research, 2018-11-15) Williams, Harley Tega
This study investigated the impact of exchange rate fluctuations on firm’s performance in Nigeria. Having noted the impact of exchange rate fluctuation from the literatures, it become paramount to investigate the impact in the Nigeria context. In this study, seven research questions were formulated which led to the test of seven hypotheses. The major objective of the study was to empirically investigate the impact of exchange rate fluctuations on return of investment. The study makes use of descriptive and ordinary least square methodology. The scope of the study is 2012 to 2016 on a panel data. From the study. The Exchange rate plays a significant impact on Return on Investment as most of the banks are involved in exchange rate transactions. The regression result shows that there is a positive relationship between Return on Investment and exchange rate of 145.4265. This implies that a unit increases in exchange rate of 145.4265 will bring about a rise of 145.4265 in Return on Investment. Since the T-calculated value in the study is 0.287 which is compared to 0.05 i.e .287>0.05 we reject the null and accept the alternative hypothesis that there is a significant relationship between exchange rate and return on investment (firm’s performance). Other variables used in the study have a positive relationship with return on investment. In the regression result, the coefficient of determination is very high. It shows that about 67 percent of the total variations in Return on Investment (ROI) are explained by all the independent variables in the model.
The Impact of Global Financial Crisis on Economic Growth on a Developing Economy. (An Instrumental Variable Regression Approach)
(Global Advanced Research Journal of Management and Business Studies, 2014-01-25) Williams, Harley Tega
The recent Global financial crisis went a long way to revalidate the business cycle theory and therefore reminded us of its possible re-occurrence. However to answer the question of whether this crisis affected the Nigerian economy, is the objective of this study. The specific objectives of this study were therefore to investigate the effect of the global financial crisis on economic growth, consumption and investment. With the aid of data from the World Bank indicators and the National Bureau of Statistics the study covered the period 1981 to 2011. To attain therefore mentioned objectives, the study used the Zivot Andrews test to check the strongest point of the structural break and then instrumental variable regression and OLS with dummy effects to test the significance of the crisis. The result suggests that 2009 was the structural break point according to the Zivot Andrews test. And further opine that the Global financial crisis affected Economic growth, consumption and investment negatively, but is significant only on investment and not significant on consumption and Gross Domestic Product.
The Impacts of Financing Public Utility with Bond in a Developing Economy (A Co-Integration Approach) Bonds
(Global Journal of Management and Business Research: C Finance USA, 2014-02-22) Williams, Harley Tega
This study investigate Bond has a debt instruments’ use to finance capital project by different levels of governments. Public utility such as roads, sea and air ports etc in any economy can be attributed or measured to an extent of the amount of money invested on bonds or the amount of Bond issued to finance public utility. However, Empirical evidences attest to the fact that bond is designed to finance capital projects in advance country but in the case a developing economy the reverse is the case hence making it difficult for business organizations to tap unto this financing window. This research work try to capture the effect of bonds on public utility using infrastructural development as a dependent variable in Nigeria with data from 1980 to 2011.
The Impacts of Globalization in Developing Economy (A Vector Autoregression Analysis)
(International Journal of Research in Social Sciences, 2017-06-30) Williams, Harley Tega
This paper investigates the impact of globalization on economic development in a developing country from 1982 to 2016using vector auto-regression method. The objective of the study is to investigate the impact of human capital development on globalization in a developing nation. Through this research, we explore some variables proxy for globalization and likely to impact on economic growth. The vector auto-regression shows the coefficient, standard errors and t statistics of each of the variables, making it clear for us to predict the direction of each variable in the model. The results revealed that economic indicators such as human capital development and government policy are most robust predictors that aids globalization on economic development in a developing nation. With the present economic position in West Africa, globalization being critical for an economy development, led the study to examine the relationship between some macroeconomics variables that can influence globalization and economic development in a developing economic.
Minimizing Healthcare Cost in Selected Tertiary Institutions in Nigeria
(Innovations, 2021-03-17) Williams, Harley Tega
Research Problem: Healthcare and health insurance are words often used interchangeably but the former is much wider than the later when used in a University system. The proposed review of the health insurance cost by the National Health Insurance Scheme (NHIS) in the year 2018 call for this study to investigates healthcare cost in tertiary institutions in Nigeria. Methodology: We proposed a linear programming model as an optimization solution to minimize healthcare cost in tertiary institutions in Nigeria. This study used mathematical assumptions and data sourced through questionnaires and interviews to determine the decision parameters on the linear programing model to minimize healthcare cost. The main aim of the study was to investigate if linear programming is a satisfactory representation in healthcare cost minimization model. The Cronbach's alpha value was used to test the consistency, validity and reliability of the data and the assumptions adopted in the study. To achieve the objective, research questions and linear programming models were formulated and the appropriate variables were proxies as healthcare cost are distilled from related literatures. Findings: To answer the research questions, the calculated value from the linear programming solver was used to compare the study expected healthcare cost incurred by the selected tertiary institutions at time. It was revealed that the acceptance of the alternative hypothesis and the linear programming is a satisfactory representation for minimizing healthcare cost. Conclusion: The study therefore conclude that cost reduction should be redistributed to the participating insured, so as to make health insurance business a risk minimizing institution and not a profit maximization centre, as practiced by various Health Management Organisations in Nigeria.
Role of Financial Inclusion in Economic Growth and Poverty Reduction in a Developing Economy
(International Journal of Research in Economics and Social Sciences (IJRESS), 2017-05-25) Williams, Harley Tega
This study is to empirically investigate the role of financial inclusion in poverty reduction and economic growth in a developing economy using panel data analysis ranges from 2006 to 2015 within a log linear model specification framework. The methodology applied to the study is distilled from the literatures. From our regression result, the numbers of active ATM, bank branches and government expenditures selected from three Africa countries were the most robust predictors for financial inclusion on poverty reduction in a developing economy. One percent increase on ratio of active ATM will leads to about 0.0082 percent increase in the gross domestic product and a reduction of poverty in developing economy, this however does not perfectly corroborate with Sarma (2008). An indicator shows that most of the ATM in developing economy are obsolete and thus required a technological upgrade to have a significant impact in rural areas. The coefficient of determination was very high. It shows that about 92 percent of the total variations in real growth rate of gross domestic product are explained by all the independent variables in the model. Consequently, the study recommends that Government should focus on poverty reduction through focus on infrastructural development that will enhance banking services.

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