Effects of Accounting Information Management on Profitability of Nigerian Banking Industry

Agbaje, Wale Henry and Busari, Ganiyu Adeniran and Adeboye, Nureni Olawale (2014) Effects of Accounting Information Management on Profitability of Nigerian Banking Industry. International Journal of Humanities Social Sciences and Education (IJHSSE), 1 (9). pp. 100-104. ISSN 2349-0373

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Abstract

This study examined the extent to which accounting information management has enhanced the profitability of Nigerian banks. In the model specified, accounting information on Liquidity, credit quality, cash flow, wage rate, exchange rate and Inflation rate are the Jointly Pre-determined variables while, Profitability the Determined variable. The work involves the use of Ordinary Least Square (OLS) Regression technique to fit a realistic model into the collected time data, and several model’s validity techniques such as Coefficient of determination (R2), Multiple Correlation coefficient(r), Durbin-Watson, Akaike info Criterion (AIC), Schwarz Criterion (SWC) and F-statistic were employed to validate this model. The model was also tested for Stationary using Unit Root test and Augmented Dickey Fuller (ADF) while Hypothesis tested to validate our theoretical background on banking Profitability as it is affected by accounting information management. The result revealed that accounting information had impacted significantly on the growth of Profitability in Nigerian banking industry has observed in the R2 of 80.24%, Correlation coefficient of 0.90, Durbin-Watson of 1.76, AIC of 7.48, SWC of 7.87 and F-result of 43.13 with significance value of 0.000034. Also, the Stationary test carried out for the model shows that there is a short run relationship at First Difference between Profitability and all the explanatory variables considered in this research.

Item Type:	Article
Subjects:	Q Science > Q Science (General) Q Science > QA Mathematics
Divisions:	Faculty of Engineering, Science and Mathematics > School of Mathematics
Depositing User:	Mr Taiwo Egbeyemi
Date Deposited:	13 Jul 2020 11:09
Last Modified:	13 Jul 2020 11:09
URI:	http://eprints.federalpolyilaro.edu.ng/id/eprint/988

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