International records / OpenAlex research

Financial Leverage, Asset Quality, and Financial Performance: Empirical Evidence from Quoted Deposit Money Banks in Nigeria

The study investigated the influence of financial leverage and asset quality on the financial performance of quoted deposit money banks in Nigeria: 2015-2024. Using panel data of ten systemically important banks (100 bank-year observations), we employed the Panel Generalized Least Squares and the Augmented Mean Group estimation techniques to refer to average effects and bank-specific heterogeneity, respectively. The empirical results provide evidence that financial leverage, measured by the debt-to-equity ratio, and the debt-to-assets ratio, have negative significance on return on assets (ROA)…