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The Trends and Patterns of the Capital Structure and Performance of the Nigerian Banks
International Journal of Finance and Banking Research
Volume 2, Issue 3, June 2016, Pages: 72-83
Received: Mar. 29, 2016; Accepted: May 10, 2016; Published: Jun. 7, 2016
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Philip Olawale Odewole, Department of Management and Accounting, Obafemi Awolowo University, Ile-Ife, Nigeria
Rafiu Oyesola Salawu, Department of Management and Accounting, Obafemi Awolowo University, Ile-Ife, Nigeria
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This study analyzed the trends and patterns of capital structure and performance of financial firms in the Nigerian banking sectorwith panel data of 14 commercial banks in Nigeria over the periods 2005-2012..Descriptive methods of analysis were employed to analyze the trends and performance. The result showed that the banks exhibit 75.2% short-term financing. It shows that Nigerian banks relied heavily on external finance which is short-term in nature. Also, the result revealed that towards the end of 2008 and early 2009, the collapse of the interbank markets brought about a critical reassessment of the banksby the Central Bank of Nigeria. The study suggests that policy makers should find the means of overhauling the banking sector before its impending doom and a policy measures capable of increasing the fixed asset base of Nigerian banks.
Trends, Patterns, Capital Structure, Descriptive Statistics, Performance
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Philip Olawale Odewole, Rafiu Oyesola Salawu, The Trends and Patterns of the Capital Structure and Performance of the Nigerian Banks, International Journal of Finance and Banking Research. Vol. 2, No. 3, 2016, pp. 72-83. doi: 10.11648/j.ijfbr.20160203.13
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This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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