Financial Reporting and Valuation Research
Open access
Peer reviewed
Abstract
Abstract
This study investigates the impact of key financial ratios; Return on Assets (ROA); Loan-toDeposit Ratio (LDR), and Cost-to-Income Ratio (CIR) on the market valuation (proxied by Tobin's Q) of listed Deposit Money Banks (DMBs) in Nigeria from 2015 to 2024. Utilizing panel data regression with fixed effects and secondary data from five listed Nigerian DMBs, the analysis addresses gaps in prior research by incorporating post-pandemic dynamics and regulatory shifts. Diagnostic tests confirmed data suitability (unit roots, multicollinearity, heteroscedasticity), and cointegration tests (Pedroni) established long-run equilibrium relationships. Results indicate that ROA exerts a statistically significant positive influence on Tobin's Q (β = 0.221, p < 0.01), underscoring the importance of profitability for market valuation. Conversely, CIR demonstrates a significant negative relationship (β = -0.030, p = 0.008), highlighting the detrimental effect of operational inefficiency. LDR exhibits a marginally positive but statistically weak association (β = 0.018, p = 0.052), suggesting limited explanatory power for liquidity management. The model explains 60.3% of the variance in Tobin's Q (Adjusted R² = 0.603, F-statistic = 19.46, p < 0.01), confirming the collective significance of these ratios. The study concludes that profitability (ROA) and operational efficiency (CIR) are primary determinants of market valuation in the Nigerian banking sector, while liquidity (LDR) plays a secondary role. These findings align with signaling theory, as positive financial metrics enhance investor confidence, and agency theory, as managerial efficiency correlates with shareholder value maximization.
Direct answer
What can I do from this paper page?
Use this page to scan "Financial Ratio Performance and Market Value of Listed Deposit Money Banks in Nigeria: An Empirical Study" quickly: start with the summary and abstract, then check the authors, source, topics, and related papers. From here, open Scollr to follow Financial Reporting and Valuation Research, save the paper, or map adjacent work.
Research areas
Follow related topics
Citation
BibTeX
@article{Akinleye2026Financial,
title = {Financial Ratio Performance and Market Value of Listed Deposit Money Banks in Nigeria: An Empirical Study},
author = {Gideon Tayo Akinleye},
journal = {JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT},
year = {2026},
doi = {10.56201/jafm.vol.11.no8.2025.pg407.428},
url = {https://doi.org/10.56201/jafm.vol.11.no8.2025.pg407.428}
}FAQ
Using this paper in a discovery workflow
How do I find related work for this paper?
Use the related papers and topic links on this page as starting points. In Scollr, you can also open the paper and build a literature map around its references, citing papers, and related work.
How can I keep up with new Financial Reporting and Valuation Research papers?
Follow Financial Reporting and Valuation Research in Scollr. New papers from the topic flow into a personalized feed, and you can save useful studies to revisit later.
Can I cite this paper from this page?
This page includes a static BibTeX block for Financial Ratio Performance and Market Value of Listed Deposit Money Banks in Nigeria: An Empirical Study. Always verify the DOI, source, and publication details against the publisher record before submitting a manuscript.
Follow this research in Scollr
Follow the topics and authors behind this paper, save useful studies, and build a literature map when you are ready to go deeper.
Get the app