An Empirical Investigation of the Liquidity-Profitability Relationship in Nigerian Commercial
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Date
2013
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Publisher
Journal of Economics and Sustainable Development
Abstract
The study critically assessed the relationship between liquidity and profitability of Nigerian commercial banks. Purposive sampling method was used to select First Bank Nigeria Plc as the case study being the oldest and the biggest among the 24 commercial banks currently operating in Nigeria. Secondary data collated from First Bank’s annual reports of ten years (2002-2011) were used for the study. The regression analysis of ordinary least square was employed to analyses the data. Student’s test was also used to test the relevant hypothesis.Findings show that there is a very high correlation between liquidity of banks and their profitability.
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Keywords
Profitability, Liquidity,, Insolvency