International records / OpenAlex research

Liquidity Ratio and Financial Performance of Commercial Banks in Nigeria

This study examines the impact of the liquidity ratio on the financial performance of commercial banks in Nigeria from 1986 to 2024, a period marked by significant financial reforms and economic shifts. Against the backdrop of persistent volatility in bank profitability, the research investigates the dynamics between liquidity management, measured by the liquidity ratio (LQR), and bank performance, proxied by Bank Profit Margin (BPM). The study also incorporates interest rate spread (IRS) and inflation rate (INFR) as control variables to provide a comprehensive analysis. Employing an ex-post f…