Business Studies

Business Studies


Pages: 10  ,  Volume: 26  ,  Issue: 1 , April   2019
Received: 19 Apr 2019  ,  Published: 22 April 2019
Views: 213  ,  Download: 112


# Author Name
1 Sunday M. Aguwamba
2 Chukwuemeka S. Ojukwu


The objective of the study was to examine the financial appraisal of online banking on the Deposit Money Banks in Nigeria between 1991 and 2015. The study adopted Fully Modified Ordinary Least Squares (Fully Modified OLS) to measure the relationship among the variables. The finding of the study showed that interaction of online banking and Deposit Asset Ratio has positive significant impact on the profitability of the Deposit Money Banks in Nigeria in the long run. In addition, the finding of the study showed that interaction of online banking and Loans to Asset Ratio has significant impact on the profitability of the Deposit Money Banks in Nigeria in the long run. The ECM was correctly signed and significant at 5% level of significance. The speed of adjustment of the ECM was 134.72%.  Lastly, the short run showed that loan to asset ratio and inflation were significant at 0.05 level of significance. The study therefore recommends that Deposit Money Banks should intensify effort on the adoption of online banking.


  • Nigeria
  • Online banking
  • Deposit Money Bank
  • Fully Modified OLS
  • References

    Abaenewe, Z.C., Ogbulu, O.M. & Ndugbu, M.O.(2013). Electronic Banking and Bank Performance In Nigeria, West African Journal of Industrial & Academic Research 6 (1)

    Ajzen, I.; & Fishbein, M (1980), Understanding attitudes and predicting social behavior, Englewood Cliffs, NJ: Prentice-Hall.

    Amu C.U., & Nathaniel. C.N. (2016). E-Banking and Commercial Bank Performance in Nigeria: A Cointegration and Causality Approach. International Journal of e-Education, e-Business, e-Management and e-Learning.

    Andrews, T. (2012). What is Social Constructionism? Ground Theory Review 11(1): 1- 22.

    Aymen, B. M. M. (2013). Impact of capital on financial performance of banks: the case of Tunisia. Banks and Bank Systems 8(4): 47- 54.

    Bagozzi, R. P.; Davis, F. D. & Warshaw, P. R. (1992), "Development and test of a theory of technological learning and usage.", Human Relations, 45 (7): 660 – 686, doi:10.1177/001872679204500702.

    Dinh, V, Le & U, Le P (2015) Measuring the Impacts of Internet Banking to Bank Performance: Evidence from Vietnam. Journal of  Internet Banking and Commerce 20:103.

    Engle, R. F., & Granger, C. J. W. (1987). “Co-integration and Error Correction: Representation, Estimation,and Testing,” Econometrica, 55, 251-276.

    Ngango, A., Mbabazize, M., & Shukla, J. (2015). E-banking and the performance of commercial banks: a case of commercial banks in Rwanda. European Journal of Accounting Auditing and Finance Research 3 (4), 25-57.

    Pyun, C. S., Scruggs, L. & Nam, K. (2002). Internet banking in the U.S., Japan, and - 81.Europe. Multinational Business Review 10(2): 73- 81.

    Rengasamy, D. (2014). Impact of Loan Deposit Ratio (LDR) on Profitability: Panel Evidence from Commercial Banks in Malaysia. Proceedings of the Third International Conference on Global Business, Economics, Finance and Social Sciences (GB14Mumbai Conference) Mumbai, India. 19-21 December 2014 ISBN: 978-1-941505-21-2 Paper ID: MF498

    Roberts, P., & Amit, R. (2003). The dynamics of innovative activity and competitive advantage: The case of Australian retail banking, 1981 to 1995.

    Rogers, E. M. (1983). Diffusion of innovations (3rd ed.). New York: Free Press of Glencoe.

    Stephanie K.K. & Moses K.W.(2015).  Effects of Internet Banking on the Financial Performance of Commercial Banks in Kenya: a Case of Kenya Commercial Bank, International Journal of Scientific and Research Publications, Volume 5.