Effects of Recapitalization on Profitability of Quoted Deposit Money Banks in Nigeria

Abstract

The main objective of this paper is to empirically assess the effects of bank recapitalization on the profitability of Deposit Money Banks in Nigeria. The empirical analysis covered the period from 2005 to 20016, and taking a case study of fifteen banks quoted on the Nigerian stock Exchange. The data for the study were obtained from secondary sources including the annual reports and financial statements of all the Deposit Money banks quoted on the Nigerian stock Exchange. The study adopts causal research design which uses historical information to study the existing knowledge. The data were analyzed using pooled regression analysis through STATA window 14 package. The finding from the study shows that bank recapitalization has effects on returns on assets (profitability). The implication of this study is that the bank management have been able to effectively and efficiently utilize their assets to generate more profit for the banks. It therefore recommended that banks should improve on their total assets turn over and to diversify their finds so that they can generate more income on their assets.