Research Article
Capital Adequacy and Financial Performance of Listed Deposit Money Banks in Selected Sub-Sahara African Countries
Issue:
Volume 10, Issue 3, September 2025
Pages:
121-136
Received:
29 April 2025
Accepted:
13 May 2025
Published:
5 July 2025
Abstract: Financial sustainability is essential in creating long-term value for companies and boosts stakeholders’ confidence. Capital adequacy is a global tool in resolving financial sustainability’s inefficiencies of Deposit Money Banks (DMBs). However, in Sub-Sahara African Countries (SSAC), DMBs financial performance has not been fully harnessed. While existing studies have explored various aspects of financial performance, limited attention has been given to the integration of capital adequacy mechanisms into operations of DMBs. Thus, this study examined the effect of capital adequacy on financial performance of listed deposit money banks in selected sub-Sahara African countries. The study adopted ex-post facto research design. The population comprised 42 DMBs listed on the exchange groups (Nigeria, Ghana, Rwanda, South Africa and Cote D’Ivoire) as at December 31, 2023. Inclusive criterion was employed to select a sample of 34 listed DMBs from the selected countries. Data were extracted from the financial statements of the selected banks for a period of 10 years (2014–2023). Findings revealed that capital adequacy had significant effect on return on equity (Adj.R2 = 0.01, F (4, 302) = 43.81, p < 0.05), and return on assets (Adj.R2 = 0.14, F (4, 302) = 154, p < 0.05) of listed deposit money banks in the selected SSAC. The study concluded that capital adequacy enhanced financial performance of listed deposit money banks in the selected sub-Sahara African countries. The board and management of listed deposit money banks should ensure adequate capitalization of their institutions, and efficient utilization of resources to further enhance financial performance.
Abstract: Financial sustainability is essential in creating long-term value for companies and boosts stakeholders’ confidence. Capital adequacy is a global tool in resolving financial sustainability’s inefficiencies of Deposit Money Banks (DMBs). However, in Sub-Sahara African Countries (SSAC), DMBs financial performance has not been fully harnessed. While e...
Show More
Research Article
Integrating Corporate Governance and XBRL Technology to Enhance Financial Crisis Prediction Models
Basma Mohamed*
,
Mahmoud Almashad,
Samia A. El-Moneim Kabel
Issue:
Volume 10, Issue 3, September 2025
Pages:
137-143
Received:
28 March 2025
Accepted:
7 April 2025
Published:
14 July 2025
Abstract: The ability to accurately predict financial crises is of paramount importance for investors, regulators, and corporate management. Financial distress can have cascading effects throughout the economy, leading to significant losses and instability. Traditional financial crisis prediction models have primarily focused on quantitative financial ratios derived from accounting statements. While these models have provided valuable insights, they often fall short by neglecting the crucial qualitative aspects of corporate governance (CG). This research aims to study the impact of integration between corporate governance and Extensible Business Reporting Language (XBRL) technology on the efficiency of financial crisis forecasting models. Many large companies face financial crises due to poor financial disclosure and low governance, which leads to low confidence in the financial markets. The research provides a theoretical framework for the definition of XBRL and its importance in financial disclosure, achieving transparency and reducing the likelihood of errors. It also highlights the impact of corporate governance through indicators such as board independence, ownership of major owners, and institutional ownership, on the quality of financial reports published using XBRL, and shows how this technology can support governance principles, improve the transparency of financial information, enhance the accuracy of financial crisis forecasting models and increase the efficiency of stock markets.
Abstract: The ability to accurately predict financial crises is of paramount importance for investors, regulators, and corporate management. Financial distress can have cascading effects throughout the economy, leading to significant losses and instability. Traditional financial crisis prediction models have primarily focused on quantitative financial ratios...
Show More
