Portfolio Management and the Profitability Level of Banks in Nigeria
Keywords:
Portfolio Management, Broad Money, Mean Asset Rating Portfolio, Portfolio Diversification, Capital Market ParticipationAbstract
The study objective is to establish the relationship between portfolio management and financial performance of banks in Nigeria. The research is valuable to bank managers as it informs them on necessary considerations to make while selecting the class of assets in a portfolio, the industry policy makers and contributes to a broader realm of academic research. The study adopts the descriptive analytical research design. The study adopts secondary data and used SPSS to analyze the data. The results show that portfolio management has a positive relationship in profitability level of banks in Nigeria and recommends banks develop robust investment strategies to manage their portfolio investments for better profits.
Downloads
References
Adam, A., Houkari, M., & Laurent, J.P. (2008). Spectral risk measures and portfolio selection. Journal of Banking & Finance, 32(9), 1870-1882
Ang, A., & Chen, J. (2002). Asymmetric correlations of equity portfolios. Journal of Financial Economics, 63(3), 443-494
Arnold, P. (2010). Project portfolio management: Balancing risk and performance in turbulent times. Chartered Institute of Management Accountants (CIMA), 1011.
Arnold, G. (2005). Corporate financial management 3rd ed. Harlow. Financial Times/Prentice Hall. 354.
Bourgi, S. (2019). What is Portfolio Management? Mutualfunds.com
Campbell, J & Vicera, .M. (2002). Strategic asset allocation: Portfolio Choice for Long Term Investors. Clarendon Lectures in Economics, 2002.
Cooper, J., Teller, B., Natalie, U., Alexander K., & Hans G. G. (2000). Portfolio Management. International Journal of Project Management, 30(5), 596-607
De Brouwer, P. (2009). Maslowian portfolio theory: An alternative formulation of the behavioral portfolio theory. Journal of Asset Management 9(6), 359365.
Driessen, J. & Laeven, L. (2007). International portfolio diversification benefits: Cross-country evidence from a local perspective. Journal of Banking & Finance, 31(6), 1693-1712
Emily, D., & Hutson, E. (2006). The performance and diversification benefits of funds of hedge funds. Journal of International Financial Markets, Institutions and Money, 16(1), 4-22
Donald, W. (2015). Security analysis, portfolio management, and financial derivatives. Journal of Business and Economics, 12(3), 24-35
Evans, L.J. & Archer, H.S. (1968). Diversification and the reduction of dispersion: An empirical analysis. Journal of Finance, 23(5), 761-767
Fama, E.F., & Kenneth, R. F. (1992). Cross-section of expected stock returns. American Journal of Finance, 47(2), 427-465
French, C. W. (2003). The capital asset pricing model. Journal of investment Management, 1(1), 6072.
Lintner, J. (1965). The valuation of risk assets and the selection of risky investments in stock portfolios and capital budgets. Review of Economics and Statistics, 47, 13-37.
Markowitz, H.M. (1952). Portfolio Selection. Journal of Finance, 7, 77-91. https://doi.org/10.1111/j.1540-6261.1952.tb01525.x
Mehrling, Perry (2005). Fischer black and the revolutionary idea of finance. Hoboken: John Wiley & Sons, Inc.
Merton, C. (1973). An intertemporal capital asset pricing model. Econometrica, 41(5).
Mosin, J. (1966). Wages, profits and the dynamics of growth. Quarterly Journal of Economics, 80, 376399.
Bender, J., Briand, R., Nielsen, F., & Stefek, D. (2010). Portfolio of risk premia: A new approach to diversification. The Journal of Portfolio Management, 36(2), 17-25.
Page, S. & Taborsky, M. (2011). The myth of diversification: Risk factors versus asset classes. Journal of Portfolio Management, 37(4), 1-20
Oyejido, A. (2012). Strategic agility and competitive performance in the telecoms industry; An empirical investigation. American International Journal of Contemporary Research, 2(3), 12-25
Roychoudhury, S. (2007). Optimal portfolio and the efficient frontier. Journal of Finance, 13-19.
Rubinstein, M. (2006). A History of the Theory of Investments. Hoboken: John Wiley & Sons, Inc.
Shefrin, H., & Statman, M. (2000). Behavioral Portfolio Theory. Journal of financial and Quantitative analysis 35(2), 127151.
Tanui, J. K., Wanyoike, D. M. & Ngahu, S. (2015). Assessment of credit risk management practices on financial performance among deposit taking SACCOs in Nakuru East sub county, Kenya. International Journal in Management and Social Science, 3(5), 602-610
Yahaya, A. (2012). On numerical solution for optimal allocation of investment funds in portfolio selection problem. Central Bank of Nigeria Journal of Applied Statistics, 3, 1-15.
Published
How to Cite
Issue
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
The work simultaneously licensed under a Creative Commons Attribution 4.0 International License
You are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
-
Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
