Earnings persistence of Nigerian listed banks
Banks report huge profits yearly yet some of these banks were reported to lack capital adequacy and some were reported to be close to being insolvent. Therefore, it is important to determine whether or not the profits reported by these banks are persistent. As a result, the main objective of this s...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2020-07-01
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| Series: | Jurnal Siasat Bisnis |
| Subjects: | |
| Online Access: | https://jurnal.uii.ac.id/JSB/article/view/14879 |
| _version_ | 1797984156260499456 |
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| author | Segun Abogun Taiwo Azeez Olaniyi Muftau Adeniyi Ijaiya Temitope Olamide Fagbemi |
| author_facet | Segun Abogun Taiwo Azeez Olaniyi Muftau Adeniyi Ijaiya Temitope Olamide Fagbemi |
| author_sort | Segun Abogun |
| collection | DOAJ |
| description |
Banks report huge profits yearly yet some of these banks were reported to lack capital adequacy and some were reported to be close to being insolvent. Therefore, it is important to determine whether or not the profits reported by these banks are persistent. As a result, the main objective of this study is to examine the persistence of earnings of Nigerian listed banks. The explanatory research design was adopted and data were gathered from the secondary source, specifically from the financial statements of Nigerian quoted banks. The entire fifteen (15) quoted deposit money banks which constitute the population of the study was examined over a period of eleven (11) years spanning 2005 to 2015. In this study, the Generalized Method of Moments (GMM) dynamic panel estimation technique was employed. The study found that the earnings of the Nigerian listed banks are less persistent, that is, less sustainable. It is therefore recommended that investors should exercise caution by paying less attention to reported earnings. Instead, effort should be made to determine the persistent level of earnings to avoid wrong investment decisions.
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| first_indexed | 2024-04-11T06:58:11Z |
| format | Article |
| id | doaj.art-b7c44c43fe2946009f2646e64b6abe4b |
| institution | Directory Open Access Journal |
| issn | 0853-7666 2528-7001 |
| language | English |
| last_indexed | 2024-04-11T06:58:11Z |
| publishDate | 2020-07-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Jurnal Siasat Bisnis |
| spelling | doaj.art-b7c44c43fe2946009f2646e64b6abe4b2022-12-22T04:38:57ZengUniversitas Islam IndonesiaJurnal Siasat Bisnis0853-76662528-70012020-07-0124210.20885/jsb.vol24.iss2.art6Earnings persistence of Nigerian listed banksSegun Abogun0Taiwo Azeez Olaniyi1Muftau Adeniyi Ijaiya2Temitope Olamide Fagbemi3Department of Accounting, University of Ilorin, Kwara, NigeriaDepartment of Accounting, University of Ilorin, Kwara, NigeriaDepartment of Finance, University of Ilorin, Kwara, NigeriaDepartment of Accounting, University of Ilorin, Kwara, Nigeria Banks report huge profits yearly yet some of these banks were reported to lack capital adequacy and some were reported to be close to being insolvent. Therefore, it is important to determine whether or not the profits reported by these banks are persistent. As a result, the main objective of this study is to examine the persistence of earnings of Nigerian listed banks. The explanatory research design was adopted and data were gathered from the secondary source, specifically from the financial statements of Nigerian quoted banks. The entire fifteen (15) quoted deposit money banks which constitute the population of the study was examined over a period of eleven (11) years spanning 2005 to 2015. In this study, the Generalized Method of Moments (GMM) dynamic panel estimation technique was employed. The study found that the earnings of the Nigerian listed banks are less persistent, that is, less sustainable. It is therefore recommended that investors should exercise caution by paying less attention to reported earnings. Instead, effort should be made to determine the persistent level of earnings to avoid wrong investment decisions. https://jurnal.uii.ac.id/JSB/article/view/14879PersistenceEarningsBanksInvestment DecisionGMM |
| spellingShingle | Segun Abogun Taiwo Azeez Olaniyi Muftau Adeniyi Ijaiya Temitope Olamide Fagbemi Earnings persistence of Nigerian listed banks Jurnal Siasat Bisnis Persistence Earnings Banks Investment Decision GMM |
| title | Earnings persistence of Nigerian listed banks |
| title_full | Earnings persistence of Nigerian listed banks |
| title_fullStr | Earnings persistence of Nigerian listed banks |
| title_full_unstemmed | Earnings persistence of Nigerian listed banks |
| title_short | Earnings persistence of Nigerian listed banks |
| title_sort | earnings persistence of nigerian listed banks |
| topic | Persistence Earnings Banks Investment Decision GMM |
| url | https://jurnal.uii.ac.id/JSB/article/view/14879 |
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