International Journal of Islamic and Middle Eastern Finance and Management, Mar 29, 2013
PurposeThis paper aims to assess the role of the hisbah institution in ensuring ethical business ... more PurposeThis paper aims to assess the role of the hisbah institution in ensuring ethical business practices in Nigeria. The aim is to correct the erroneous impression that the institution is meant only to serve spiritual and social purposes in the society devoid of economic contribution.Design/methodology/approachThe paper uses a literature survey approach to describe the economic dimension of the institution and its specific role in ensuring that businesses are conducted in line with Islamic business ethics.FindingsThe paper confirms that absence of discussion on the economic role of the hisbah institution in complementing the effort of regulatory and monitoring authorities in the inspection of weights and measures, quality of food products, manipulation of prices, supplies and production, monopolistic collisions, cheating and fraud, has made many people in Nigeria mistake it for an institution whose primary occupation is to prevent and control moral decadence and social vices in such societies.Practical implicationsThe paper concludes that the task ahead of shari'ah implementing states in Nigeria therefore is to maximally exploit hisbah's economic role in view of its relevance to the modern economy.Originality/valueThe paper attempts to fill the vacuum in the contemporary literature on the economic role of hisbah in Muslim societies.
The nature and extent of relationship between firm attributes and bank financial performance have... more The nature and extent of relationship between firm attributes and bank financial performance have continued to attract the interest of researchers in view of the role that banks play in the economy of every nation. This study assesses the effect of firm specific variables on financial performance of Deposit Money Banks (DMBs) in Nigeria. The study formulates ten (10) hypotheses and applies panel data regression to analyse the extent to which market share, liquidity, credit risk, interest rate spread, leverage, efficiency, operating expenses, deposits, capital management, and bank size affect the financial performance of the banks. The study utilises secondary data extracted from the financial statements of the 13 banks listed on the Nigerian Stock Exchange (NSE) that have their financial statements available over the period 2005 to 2014. Due to absence of cross-sectional effect in the dataset as confirmed by the result of Breusch Pagan Lagrangian Multiplier test and presence of heteroskedasticity, the study uses robust pooled panel regression result for analysis and interpretation. The result of the robust pooled regression model reveals that financial performance of banks in Nigeria is significantly affected by market share, liquidity, interest rate spread, leverage, and operating expenses. The result also reveals that default risk, efficiency, deposits, capital management and size have no significant effect on financial performance of DMBs. In view of this, the study recommends that the Central Bank of Nigeria (CBN) should formulate policies that will motivate banks to increase their market share so that banking structure will be based on market share rather than reduction in the number of players. In addition, the CBN should at least maintain the current liquidity reserves for the banks in view of the strong positive relationship it has with banks’ financial performance. On their part, banks’ management should strive to put deposit to more profitable use in order to increase interest rate spread while shareholders should continue to put in place policies and strategies that will ensure effective management of their capital, size and efficiency for increased profitability.
This study examines the impact of market structure and firms specifics on the profitability of de... more This study examines the impact of market structure and firms specifics on the profitability of deposit money banks in Nigeria. The study formulates five hypotheses and applies longitudinal panel data regression to analyse the relationship between the dependent variable, return on assets and the independent variables, market concentration, market share, capital management, credit size and size of eight (8) sampled banks. Furthermore, the study utilises secondary data extracted from the financial statements of the banks over the period 2005 through to 2012. The result of the robust random effect regression provides evidence that market share, capital, credit size and bank size have significant impact on profitability of banks in Nigeria. It also shows that bank concentration has no significant impact on profitability. Based on the findings, the study recommends among others that Central Bank of Nigeria should deemphasise the policy of mass reduction in the number of banks to achieve concentrated banking environment. Instead, the apex bank should formulate policies that will motivate banks to increase their market share so that banking structure will be based on market share rather than reduction in the number of players. On their part, banks’ management and shareholders should continue to raise capital and put in place policies and strategies that will ensure effective management of their capital for increased profitability.
CAMEL as a tool for assessing the soundness of banks has become increasingly important following ... more CAMEL as a tool for assessing the soundness of banks has become increasingly important following the recent financial crises in the banking sector. Poor asset quality and low capital base were seen as some of the factors responsible for the banking failures. Several studies have been conducted to assess the effect of CAMEL on financial performance in both developed and emerging economies. These studies are however, largely characterized by conflicting findings as a result of institutional differences and measurement choices. This paper uses exploratory and descriptive methods to review extant literature on the relationship between CAMEL ratios and bank performance with a view to exposing the controversy of measurement and methodologies in this area of research that has attracted little attention in emerging economies such as Nigeria. The paper posits that CAMEL rating system is a popular way of assessing the soundness of banks in various economic and institutional jurisdiction because of the strategic importance of banks in national economies. It however observes that CAMEL studies are just evolving in emerging economies such as Nigeria and therefore concludes that there is the need to explore the relationship between CAMEL ratios and performance of banks in Nigeria especially that the country is faced with new economic situations such as dwindling oil revenue and other factors that may have serious ramifications on the country’s banking sector. The paper is important in identifying literature gaps that will serve as an impetus for future empirical studies.
This paper estimates the marginal effect of the interaction between industry concentration and CA... more This paper estimates the marginal effect of the interaction between industry concentration and CAMELS indicators on financial performance of deposit money banks in Nigeria. The paper uses secondary data extracted from the financial statements of 15 out of 22 licensed banks over the period of nine years, 2010-2018 to first examine the moderating effect of industry concentration on the relationship between CAMELS indicators and financial performance before estimating the marginal effect of the interaction. The analysis carried out shows that unlike the result of the clustered robust random effects regression, which reveals that asset quality, management efficiency, liquidity and sensitivity to market risk have significant effect on financial performance of DMBs in Nigeria; the estimates of the marginal effect shows that only the marginal effect of the interaction between capital adequacy - CAR and industry concentration - INC (CAR*INC) and managerial efficiency - MGE and industry concentration - INC (MGE*INC) is statistically significant each at 1% level of significance based on their respective p-values of 0.004 and 0.000. This confirms the fear that focusing on moderation effect of an interaction variable rather than marginal effect in a cause-effect relationship could lead to the problem of overstating regression results that involve such interaction variables. In light of the above, the paper recommends that researchers who use moderator variables should always extend their analysis to cover estimation of marginal effect of the interaction variable(s).
na fitar da wani tsokaci da ta'aliƙi mai ɗan tsawo a kan wani video clip da ya ƙunshi fatawar ɗan... more na fitar da wani tsokaci da ta'aliƙi mai ɗan tsawo a kan wani video clip da ya ƙunshi fatawar ɗan'uwanmu Sheikh Bashir Nuhu As-Salafiy Kaduna (Hafizhahul Lah wa ra'āh) game da hukuncin fitar mata musulmai gidajensu zuwa wajen gudanar da da'awah.
International Journal of Islamic and Middle Eastern Finance and Management, Mar 29, 2013
PurposeThis paper aims to assess the role of the hisbah institution in ensuring ethical business ... more PurposeThis paper aims to assess the role of the hisbah institution in ensuring ethical business practices in Nigeria. The aim is to correct the erroneous impression that the institution is meant only to serve spiritual and social purposes in the society devoid of economic contribution.Design/methodology/approachThe paper uses a literature survey approach to describe the economic dimension of the institution and its specific role in ensuring that businesses are conducted in line with Islamic business ethics.FindingsThe paper confirms that absence of discussion on the economic role of the hisbah institution in complementing the effort of regulatory and monitoring authorities in the inspection of weights and measures, quality of food products, manipulation of prices, supplies and production, monopolistic collisions, cheating and fraud, has made many people in Nigeria mistake it for an institution whose primary occupation is to prevent and control moral decadence and social vices in such societies.Practical implicationsThe paper concludes that the task ahead of shari'ah implementing states in Nigeria therefore is to maximally exploit hisbah's economic role in view of its relevance to the modern economy.Originality/valueThe paper attempts to fill the vacuum in the contemporary literature on the economic role of hisbah in Muslim societies.
The nature and extent of relationship between firm attributes and bank financial performance have... more The nature and extent of relationship between firm attributes and bank financial performance have continued to attract the interest of researchers in view of the role that banks play in the economy of every nation. This study assesses the effect of firm specific variables on financial performance of Deposit Money Banks (DMBs) in Nigeria. The study formulates ten (10) hypotheses and applies panel data regression to analyse the extent to which market share, liquidity, credit risk, interest rate spread, leverage, efficiency, operating expenses, deposits, capital management, and bank size affect the financial performance of the banks. The study utilises secondary data extracted from the financial statements of the 13 banks listed on the Nigerian Stock Exchange (NSE) that have their financial statements available over the period 2005 to 2014. Due to absence of cross-sectional effect in the dataset as confirmed by the result of Breusch Pagan Lagrangian Multiplier test and presence of heteroskedasticity, the study uses robust pooled panel regression result for analysis and interpretation. The result of the robust pooled regression model reveals that financial performance of banks in Nigeria is significantly affected by market share, liquidity, interest rate spread, leverage, and operating expenses. The result also reveals that default risk, efficiency, deposits, capital management and size have no significant effect on financial performance of DMBs. In view of this, the study recommends that the Central Bank of Nigeria (CBN) should formulate policies that will motivate banks to increase their market share so that banking structure will be based on market share rather than reduction in the number of players. In addition, the CBN should at least maintain the current liquidity reserves for the banks in view of the strong positive relationship it has with banks’ financial performance. On their part, banks’ management should strive to put deposit to more profitable use in order to increase interest rate spread while shareholders should continue to put in place policies and strategies that will ensure effective management of their capital, size and efficiency for increased profitability.
This study examines the impact of market structure and firms specifics on the profitability of de... more This study examines the impact of market structure and firms specifics on the profitability of deposit money banks in Nigeria. The study formulates five hypotheses and applies longitudinal panel data regression to analyse the relationship between the dependent variable, return on assets and the independent variables, market concentration, market share, capital management, credit size and size of eight (8) sampled banks. Furthermore, the study utilises secondary data extracted from the financial statements of the banks over the period 2005 through to 2012. The result of the robust random effect regression provides evidence that market share, capital, credit size and bank size have significant impact on profitability of banks in Nigeria. It also shows that bank concentration has no significant impact on profitability. Based on the findings, the study recommends among others that Central Bank of Nigeria should deemphasise the policy of mass reduction in the number of banks to achieve concentrated banking environment. Instead, the apex bank should formulate policies that will motivate banks to increase their market share so that banking structure will be based on market share rather than reduction in the number of players. On their part, banks’ management and shareholders should continue to raise capital and put in place policies and strategies that will ensure effective management of their capital for increased profitability.
CAMEL as a tool for assessing the soundness of banks has become increasingly important following ... more CAMEL as a tool for assessing the soundness of banks has become increasingly important following the recent financial crises in the banking sector. Poor asset quality and low capital base were seen as some of the factors responsible for the banking failures. Several studies have been conducted to assess the effect of CAMEL on financial performance in both developed and emerging economies. These studies are however, largely characterized by conflicting findings as a result of institutional differences and measurement choices. This paper uses exploratory and descriptive methods to review extant literature on the relationship between CAMEL ratios and bank performance with a view to exposing the controversy of measurement and methodologies in this area of research that has attracted little attention in emerging economies such as Nigeria. The paper posits that CAMEL rating system is a popular way of assessing the soundness of banks in various economic and institutional jurisdiction because of the strategic importance of banks in national economies. It however observes that CAMEL studies are just evolving in emerging economies such as Nigeria and therefore concludes that there is the need to explore the relationship between CAMEL ratios and performance of banks in Nigeria especially that the country is faced with new economic situations such as dwindling oil revenue and other factors that may have serious ramifications on the country’s banking sector. The paper is important in identifying literature gaps that will serve as an impetus for future empirical studies.
This paper estimates the marginal effect of the interaction between industry concentration and CA... more This paper estimates the marginal effect of the interaction between industry concentration and CAMELS indicators on financial performance of deposit money banks in Nigeria. The paper uses secondary data extracted from the financial statements of 15 out of 22 licensed banks over the period of nine years, 2010-2018 to first examine the moderating effect of industry concentration on the relationship between CAMELS indicators and financial performance before estimating the marginal effect of the interaction. The analysis carried out shows that unlike the result of the clustered robust random effects regression, which reveals that asset quality, management efficiency, liquidity and sensitivity to market risk have significant effect on financial performance of DMBs in Nigeria; the estimates of the marginal effect shows that only the marginal effect of the interaction between capital adequacy - CAR and industry concentration - INC (CAR*INC) and managerial efficiency - MGE and industry concentration - INC (MGE*INC) is statistically significant each at 1% level of significance based on their respective p-values of 0.004 and 0.000. This confirms the fear that focusing on moderation effect of an interaction variable rather than marginal effect in a cause-effect relationship could lead to the problem of overstating regression results that involve such interaction variables. In light of the above, the paper recommends that researchers who use moderator variables should always extend their analysis to cover estimation of marginal effect of the interaction variable(s).
na fitar da wani tsokaci da ta'aliƙi mai ɗan tsawo a kan wani video clip da ya ƙunshi fatawar ɗan... more na fitar da wani tsokaci da ta'aliƙi mai ɗan tsawo a kan wani video clip da ya ƙunshi fatawar ɗan'uwanmu Sheikh Bashir Nuhu As-Salafiy Kaduna (Hafizhahul Lah wa ra'āh) game da hukuncin fitar mata musulmai gidajensu zuwa wajen gudanar da da'awah.
The presentation gives an overview of Shūrā in terms of its meaning, Sharī’ah basis, scope, benef... more The presentation gives an overview of Shūrā in terms of its meaning, Sharī’ah basis, scope, benefits and principles, and how its processes can be used to strengthen modern democracy and achieve good governance. It further shows the importance of patriotism and highlights the responsibilities of patriotic Muslim citizens. It then outlines the role that Muslims are expected to play in Nigeria's forthcoming 2023 general elections. The presentation concludes with a list of advice to the present and incoming leaders on their leadership responsibilities.
The presentation gives an overview of Shūrā in terms of its meaning, Sharī’ah basis, scope, benef... more The presentation gives an overview of Shūrā in terms of its meaning, Sharī’ah basis, scope, benefits and principles, and how its processes can be used to strengthen modern democracy and achieve good governance. It further shows the importance of patriotism and highlights the responsibilities of patriotic Muslim citizens. It then outlines the role that Muslims are expected to play in Nigeria's forthcoming 2023 general elections. The presentation concludes with a list of advice to the present and incoming leaders on their leadership responsibilities.
The presentation focuses on the role of minbar (pulpit) as a means of public communication, a ve... more The presentation focuses on the role of minbar (pulpit) as a means of public communication, a veritable tool of sensitising and mobilising the Muslim Ummah, an avenue for teaching Muslims about various aspects of their religion and a space for sending powerful messages to both the learned and ignorant, the leaders and the led, the haves and have-nots, men and women, young and old. It shows the kind of relationship that the occupiers of minbar should have with government towards solving national problems.
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Papers by Ahmad Bello Dogarawa