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Papers by osagie osifo

This study looked into the impact of Foreign Direct Investments on economic growth in Kenya from ... more This study looked into the impact of Foreign Direct Investments on economic growth in Kenya from the year 1984 to 2013 .The dependent variable in this study was economic growth while the independent variables was FDI which has various influencing factors i.e. Market size, inflation rate and market openness. From a sample of 30 observations, the coefficient of variation (R Squared) was at 72.5% which means that the explanatory variables explain about 72 % of all the changes in the dependent variable. The p-value of the F-statistic is 0.0485 which is less than 5% making the F-statistic significant, meaning that the explanatory variables jointly, can influence the dependent variable i.e. economic growth rate. This was a good sign meaning that there was a positive relationship between foreign direct investment and economic growth in Kenya. These findings have led to the conclusion that the impact of foreign direct investment was positive and as such, we can say that FDI promotes economi...

$Research paper thumbnail of {'en_US': 'Corporate Diversification, Macroeconomic Factors and Performance of Quoted Deposit Money Banks in Kenya: An Empirical Assessment'}$

DOAJ (DOAJ: Directory of Open Access Journals), Jul 1, 2020

Journal of Enterprise and Development

Purpose — This study examines the effect of Government Expenditure (GE) on key sectors of the eco... more Purpose — This study examines the effect of Government Expenditure (GE) on key sectors of the economy and Stock Market Performance (SMP) in Nigeria.Method — Statistics Bulletin published by the Central Bank of Nigeria (CBN) was utilized as source for time series data between 1980 and 2021. SMP is proxied with MCAP and ASI while expenditure on agriculture, defense, education, and health formed components of government expenditure. The FM-OLS and ARDL methodology were adopted to determine the GE's short and long-term impact on SMP in Nigeria. ADF unit root testing, correlation analysis, Engle and Granger co-integration analysis, and preliminary descriptive statistics testing were all carried out.Result — The outcome indicates that all through the long and short term, GE on education, defense and agriculture have significant influence of SMP in the long run via MCAP channel. GE on defense and agriculture significantly affects SMP in the short run via ASI channel. Hence, this study ...

Journal of Enterprise and Development

Purpose — This paper re-examined financial accessibility for Small and Medium Enterprises (SMEs) ... more Purpose — This paper re-examined financial accessibility for Small and Medium Enterprises (SMEs) in Nigeria by considering the times we live occasioned by the pandemic.Method — The study adopts the cross-sectional survey research design. The primary data in this study were obtained via a questionnaire administered to 270 SMEs in Abia State, Nigeria, who had applied for credit from a bank within the last two years. The data were collected using a self-administered survey.Result — The study showed that collateral is still a significant determinant of access to credit, as an increase in the ability of SMEs to provide collateral will significantly impact their access to credit. SME size (SSIZE) was found to have a positive and significant effect on credit access, implying that large SMEs are better able to access credit. Though SME age (SAGE) had an insignificant effect on access to credit and Cost of Credit (CCR) was found to impair access to credit which is significant at 5%. This is ...

Oradea Journal of Business and Economics, 2020

Acta Universitatis Danubius: Oeconomica, 2020

This study empirically examines the influence of corporate diversification, macroeconomic factors... more This study empirically examines the influence of corporate diversification, macroeconomic factors on performance of quoted deposit money banks in Kenya within a period of 2007- 2017.The study employs secondary data collected from deposit money banks annual audited financial statements. Employing the use of descriptive statistics, correlation analysis, panel unit root analysis, co-integration test and feasible generalized least squares (FGLS), the data were estimated with the aid of E-views 9.0 econometric statistical package. Using dependent variables (Returns on Assets and Tobin Q), explanatory variables of income diversification, foreign diversification, subsidiary diversification, exchange rate and inflation rate. The findings revealed that income diversification have positive and significant effect on all the performance indicators (ROA and TOBIN Q) used in the study and were significant at 1% significance level. Foreign diversification and Subsidiary diversification have mixed ...

This study examines performance efficiency of nineteen selected commercial banks in Nigeria for t... more This study examines performance efficiency of nineteen selected commercial banks in Nigeria for the year 2009. The use of Descriptive Statistics and Data Envelopment Analysis (DEA) approach are employed to measure and evaluate the performance efficiency of the Nineteen sampled banks. The Data Envelopment Analysis (DEA) has been found to measure efficiency of banks with more precision and lower magnitude of inefficiency than other approaches. Three performance efficiency scores of constant returns to scale (CRS), variable returns to scale (VRS) and scale efficiency models are used, unlike previous studies, which concentrated on CRS or VRS alone. Overall, the results show that small and medium banks were more efficient than mega banks. The study therefore recommends amongst others that mega banks should adopt performance efficiency – enhancing strategies in order to make them contribute more to the national economy.

The study examines the determinants of performance efficiency of 19 selected banks in Nigeria in ... more The study examines the determinants of performance efficiency of 19 selected banks in Nigeria in 2009. Three performance efficiency measures of constant returns to scale (CRS), variable returns to scale (VRS) and scale efficiency models are used by employing the Data Envelopment Analysis (DEA) approach. The estimation process was done using DEA frontier software. The findings revealed that bank size and bank age are positively related to bank performance efficiency, while board independence and board ownership structure are negatively related to bank performance efficiency in Nigeria. We recommend that strong and efficient resource management policies be put in place by banks ’ management, as well as risk management policies. It is also recommended that the regulatory and supervisory role of monetary authorities and continuation of the reform process be vigorously pursued so as to enhance bank performance in Nigeria.

The study empirically examines the impact of agricultural output on per capita income in Nigeria ... more The study empirically examines the impact of agricultural output on per capita income in Nigeria for a period of thirty two years (1980 to 2015). The study employs multiple Ordinary Least Squares (OLS) analysis for the estimation process, unit root test for stationarity variables, co-integration analysis for long-run equilibrium relationship and error correction model to ascertain the short run effect of the variables. The variables used in the model were per capita income which is the dependent variable, while agricultural output (AGQ), index of industrial production (INDPR), agricultural exports (EXP) and investment (INV) served as the independent or explanatory variables. The results from the analysis showed that agricultural output (AGQ) and agricultural exports (EXP) have a significant positive relationship with per capita income. Index of industrial production (INDPR) and that of investment (INV) have insignificant positive relationships with Per capita income (PCI). The study...

This paper empirically examines limits of Arbitrage in Nigeria. The aim of the study is to demons... more This paper empirically examines limits of Arbitrage in Nigeria. The aim of the study is to demonstrate that there exist arbitrage gains in Nigerian foreign exchange market. This study employed survey and descriptive research design to demonstrate the existence of arbitrage gains in foreign exchange market in Nigeria using different Naira to Dollar rates for different purpose (Pilgrimage, Budget, Western union, BDC, Travelex, Inter –bank, Foreign medical trip and Special airline funds). The findings of the study reveal that convergence was close between BDC, Western union and parallel market rates. The “widest” margin was visible in that of pilgrim’s rate, budget rate and inter-bank rate. The paper therefore recommends that the Central Bank of Nigeria (CBN) being the regulatory authority in Foreign exchange market should have a single exchange rate in the market so that convergence can be attained.

The study examines the influence of foreign remittances on the economic performance of Nigeria us... more The study examines the influence of foreign remittances on the economic performance of Nigeria using time series data for the period 1986-2018. The time-series data was sourced from the World Bank. Error Correction Model (ECM) technique was adopted to determine the impact of foreign remittances on economic performance in Nigeria and how the exchange rate mediates the relationship. From the empirical examination, the paper posited that a reduction in the exchange rate is required for the foreign remittances to effectively influence the performance of the economy of Nigeria. The study, further, concluded that while the foreign remittances improve the performance of the economy of Nigeria, the exchange rate is harming it. The paper, therefore, recommends that the Government of Nigeria needs to overvalue naira and make it stable to boost the effect of the foreign remittances on the performance of Nigerian economy as well as collaborate with the money transfer agents to reduce the cost o...

The study examines the determinants of performance efficiency of 19 selected banks in Nigeria in ... more The study examines the determinants of performance efficiency of 19 selected banks in Nigeria in 2009. Three performance efficiency measures of constant returns to scale (CRS), variable returns to scale (VRS) and scale efficiency models are used by employing the Data Envelopment Analysis (DEA) approach. The estimation process was done using DEA frontier software. The findings revealed that bank size and bank age are positively related to bank performance efficiency, while board independence and board ownership structure are negatively related to bank performance efficiency in Nigeria. We recommend that strong and efficient resource management policies be put in place by banks’ management, as well as risk management policies. It is also recommended that the regulatory and supervisory role of monetary authorities and continuation of the reform process be vigorously pursued so as to enhance bank performance in Nigeria.

Oradea journal of business and economics, 2020

Foreign diversification offers prospective market opportunities which afford firms prospects for ... more Foreign diversification offers prospective market opportunities which afford firms prospects for greater growth and penetration of global markets. This study investigated the effect of foreign diversification on performance of quoted deposit money banks in selected Sub-Sahara African countries; Botswana, Ghana, Kenya, Malawi, Mauritius, Namibia, Nigeria, South Africa, Uganda, Zimbabwe and Zambia. The study employs secondary data collected and computed from sampled deposit money banks annual audited financial statements. Employing the use of descriptive statistics, correlation analysis, panel unit root analysis, co-integration test, multivariate panel data analysis and the system-GMM for a period of 2007-2017, the data were estimated with the aid of Eviews 9.0 econometric statistical package. Using dependent variables (Net interest margin and Tobin Q), explanatory variables of foreign diversification, bank's size and bank's age respectively. The findings revealed that foreign diversifications have negative and significant effect on all the performance indicators (NIM and TOBIN Q) used in the study. The explanatory variable (foreign diversification) was significant at 1% significance level. The findings from robustness check showed that the coefficients of foreign diversification are also largely negative for most of the banks. This study therefore recommends, amongst others, banks should consider diversification as a long run strategy for promoting growth and other forms of expansions. This can be achieved by promoting more regional banking integration within the sub-region. Given that formalities are already on the ground to facilitate entry and establishment within economies in the regional blocs, diversification in this direction will involve less institutional obstacles.

The purpose of this study is to test market efficiency with respect to merger and acquisition ann... more The purpose of this study is to test market efficiency with respect to merger and acquisition announcement using stock price adjustment methodology. Specifically, this study analyzes the effects of Nigerian company mergers and acquisition announcement on stock price adjustment of ten recent mergers as at December 31st, 2012. The weak, semi-strong, and strong form efficient market hypotheses which test an investor's ability to earn a positive abnormal return on the basis of merger announcements are examined. This work specifically focuses on the semi-strong form test in an effort to test the efficiency of merger announcement public information. Evidence here supports semi-strong market efficiency along with a positive signal exhibited by the sample of acquiring firms during the period in focus. Evidence of improving stock price after the merger announcement was also observed. This confirms the existence of a significant: difference between stock price on the date of merger and acquisition announcement public information and after the merger announcement stock price.

The study empirically examines the macroeconomic determinants of interest rate spread in Nigerian... more The study empirically examines the macroeconomic determinants of interest rate spread in Nigerian banking sector using annual time series data for the period 1981 to 2012. The study adopted a multivariate OLS analysis for the estimation process, cointegration analysis for long-run equilibrium relationship and the associated error correction model to determine the short-run impact of the variables. The Granger causality test was used to determine the direction of causality among the variables. The findings of the study were that cash reserve ratio and non-performing loans are significant determinants of interest rate spread in Nigerian banking sector; that bidirectional causality exist between financial development (M2/GDP) and interest rate spread while a unidirectional causality was found running from minimum rediscount rate to interest rate spread. We therefore recommend measures to improve and strengthen the cash reserve requirement in order to reduce the high interest rate spread in the Nigerian banking sector. Also, the corporate governance practices contributor to the high level of interest rate spread in Nigeria. INTRODUCTION The difference between lending and deposit interest rates, known as the interest rate spread (IRS), is an important determinant of the efficacy of the financial system in a country. There are, however, alternative ways of measuring IRS in the literature, such as the difference between interest income received and interest paid by a bank as a ratio of total assets or difference between the ratio of interest received and all interest bearing assets and the ratio of interest paid and all interest earning liabilities. A high interest rate spread acts as an impediment to the expansion of financial intermediation necessary for growth and development of an economy. Enendu (2003), argued that the higher the interest rate spread, the higher would be the cost of credit to the borrowers for any given deposit rate. In a country like Nigeria, a high interest rate

The paper empirically measured the degree of concentration and competition in the banking industr... more The paper empirically measured the degree of concentration and competition in the banking industry of four (4) African countries namely: Nigeria, South-Africa, Egypt and Kenya during the period 2005-2013. Using the Herfindahl-Hirschman index (HHI) to determine the concentration ratio of the five largest banks (CR5) in each country, the study found that the banking sectors in these countries are concentrated with few of the banks controlling significantly large share of the market size. Specifically the study discovered that the South African banking sector is the most concentrated while the least concentrated is Nigeria's. The study adopted the Panzar and Rosse model based on a non-structural estimation of market competition. The findings revealed that banks in these countries operate under conditions of monopolistic competition during the period. The results imply that banks in Africa do not operate in a competitive market structure environment and thus, they enjoy monopoly rents. The study recommended policies to drive competition as well as sound institutional, regulatory and supervisory frameworks to enhance the role of the banking sector in the efficient mobilisation of funds from surplus units to deficit units of the economy or financial intermediation.

The study examines the determinants of performance efficiency of 19 selected banks in Nigeria in ... more The study examines the determinants of performance efficiency of 19 selected banks in Nigeria in 2009. Three performance efficiency measures of constant returns to scale (CRS), variable returns to scale (VRS) and scale efficiency models are used by employing the Data Envelopment Analysis (DEA) approach. The estimation process was done using DEA frontier software. The findings revealed that bank size and bank age are positively related to bank performance efficiency, while board independence and board ownership structure are negatively related to bank performance efficiency in Nigeria. We recommend that strong and efficient resource management policies be put in place by banks' management, as well as risk management policies. It is also recommended that the regulatory and supervisory role of monetary authorities and continuation of the reform process be vigorously pursued so as to enhance bank performance in Nigeria.

The study examines empirically the short-run and long-run relationships between sectoral allocati... more The study examines empirically the short-run and long-run relationships between sectoral allocations to long sectors of the economy and economic development of Nigeria. The study adopted multivariate OLS analysis for the estimation process, cointegration analysis for long-run relationship and the associated error correction model to determine the short-run impact of the variables. The Granger causality test was used to determine the direction of causality among the variables. The findings of the study were that budgetary allocations to education, health and agricultural sectors positively and significantly affects economic growth in Nigeria and allocation to defence sector is negative. We therefore recommend that increase, articulate and judicious spending on these sectors of the economy as well as institutional mechanism to properly monitor the resources spent on them, so that the allocated funds are properly channeled for rapid economic growth and development.

$Research paper thumbnail of {'en_US': 'Corporate Diversification, Macroeconomic Factors and Performance of Quoted Deposit Money Banks in Kenya: An Empirical Assessment'}$

DOAJ (DOAJ: Directory of Open Access Journals), Jul 1, 2020

Journal of Enterprise and Development

Oradea Journal of Business and Economics, 2020

Acta Universitatis Danubius: Oeconomica, 2020

The study examines the determinants of performance efficiency of 19 selected banks in Nigeria in ... more The study examines the determinants of performance efficiency of 19 selected banks in Nigeria in 2009. Three performance efficiency measures of constant returns to scale (CRS), variable returns to scale (VRS) and scale efficiency models are used by employing the Data Envelopment Analysis (DEA) approach. The estimation process was done using DEA frontier software. The findings revealed that bank size and bank age are positively related to bank performance efficiency, while board independence and board ownership structure are negatively related to bank performance efficiency in Nigeria. We recommend that strong and efficient resource management policies be put in place by banks’ management, as well as risk management policies. It is also recommended that the regulatory and supervisory role of monetary authorities and continuation of the reform process be vigorously pursued so as to enhance bank performance in Nigeria.

Oradea journal of business and economics, 2020

The study examines the determinants of performance efficiency of 19 selected banks in Nigeria in ... more The study examines the determinants of performance efficiency of 19 selected banks in Nigeria in 2009. Three performance efficiency measures of constant returns to scale (CRS), variable returns to scale (VRS) and scale efficiency models are used by employing the Data Envelopment Analysis (DEA) approach. The estimation process was done using DEA frontier software. The findings revealed that bank size and bank age are positively related to bank performance efficiency, while board independence and board ownership structure are negatively related to bank performance efficiency in Nigeria. We recommend that strong and efficient resource management policies be put in place by banks' management, as well as risk management policies. It is also recommended that the regulatory and supervisory role of monetary authorities and continuation of the reform process be vigorously pursued so as to enhance bank performance in Nigeria.