How is Size Related to Profitability? Post-Consolidation Evidence from Selected Banks in Nigeria

Abstract

It is theoretically believed that increase in firm size would result to increase in firm profitability. Therefore, this study examines the relationship between size and profitability of six banks in Nigeria after the 2005 consolidation exercise. The measure of profitability is return on assets. Employing the static panel data regression method, the study found that size has an insignificant negative relationship with bank profitability. This study concludes that the 2005 consolidation exercise did not enhance the profitability of the selected banks.

Keywords: {'name': 'Size'}, {'name': 'Bank Performance'}, {'name': 'Return on Assets'}, {'name': 'Consolidation'}, {'name': 'Nigeria'}

Authors & affiliations

Funso Kolapo
Affiliation not supplied

Lawrence Ajayi
Affiliation not supplied

Olufemi Aluko
Affiliation not supplied

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