International records / OpenAlex research

Capital Adequacy and Firm Performance of Listed Money Deposit Banks in Nigeria

This study investigates the effect of capital adequacy ratio (CAR), Tier 1 leverage ratio (TLR), and equity-to-assets ratio (EAR), on the financial performance of listed deposit money banks in Nigeria. Using return on assets (ROA) as the measure of financial performance, panel data from audited financial reports of the banks for the period 2014 to 2023 was analyzed through a fixed effects model. The findings reveal that CAR has a strong, positive, and statistically significant effect on financial performance, underscoring the importance of maintaining adequate capital levels for financial stab…