Faculty of Management Sciences, Federal University Otuoke
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Gladys Anwuli NWOKOYE (PhD.) & Osagie OSIFO (PhD.)
This paper sought to empirically investigate the influence of income diversification on performance of quoted deposit money banks in selected Sub-Sahara African countries. By way of judgmental sampling and availability of data we selected Botswana, Ghana, Kenya, Malawi, Mauritius, Namibia, Nigeria, South Africa, Uganda, Zimbabwe and Zambia. The nature of the study necessitated the use of secondary data which was collected from quoted deposit money banks annual audited financial statements over the period 2007-2017. The technique adopted include: panel unit root analysis, co-integration test and the system- GMM. In achieving the objective, using dependent variables (Returns on Asset and Tobin Q), explanatory variable of income diversification then foreign diversification, subsidiary diversification, bank’s size and bank’s age respectively were used as control variables. The findings reveal that income diversifications exert positive and significant effect on all the performance indicators (ROA and TOBIN Q) respectively. On account of the major findings, we recommend, amongst others, that banks should consider income diversification as a long run strategy for promoting growth and other forms of expansions. This can be achieved by promoting more non interest earning income businesses and regional banking integration within the sub-region. This outcome calls for policy options that are capable of facilitating entry and establishment within economies in the regional blocs, because diversification in this direction has the tendency to involve less institutional obstacles.
Editorial
Published: 7 June 2019
INCOME DIVERSIFICATION AND PERFORMANCE OF QUOTED DEPOSIT MONEY BANKS IN SELECTED SUB-SAHARA AFRICAN COUNTRIES
1-11 (2019)
Abstract
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Author Information
Affiliations
Department of Banking and Finance, University of Benin, Benin City, Edo State, Nigeria
Gladys Anwuli NWOKOYE (PhD.)
Corresponding Author
Gladys Anwuli NWOKOYE (PhD.)
Cite this article
Gladys Anwuli NWOKOYE & Osagie OSIFO (2019). Income Diversification and Performance of Quoted Deposit Money Banks in Selected Sub-Sahara African. Otuoke Journal of Management Sciences, 4(1) 12 - 24.
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Osagie OSIFO (PhD.)
Department of Banking and Finance, University of Benin, Benin City, Edo State, Nigeria