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Authors:
OBI-NWOSU, Victoria Ogochukwu, OKARO, Celestine, OGBONNA, Kelechukwu Stanley and ATSANAN, Angela Nguna, Nigeria
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Abstract:
The study examines the effect of liquidity management on the performance of DMBs in Nigeria. The objective of the study is to determine the extent of relationship that exists between liquidity mechanism and DMBs performance in Nigeria from 2000 to 2015. The study employs Augmented Dickey Fuller Unit Root Test, OLS regression and Granger Causality. The result of the study revealed that liquidity mechanism is not significantly related to DMBs performance in the short run and long run. The granger result proves that liquidity mechanism hinder DMBs performance within the period under review in the study. Hence, the study recommends that DMBs should be given leverage of plugging back funds into investment to booster profitability while maintaining a level of liquidity ratio.
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