Efficacy of Management Quality on the OperationalEfficiency of Financial Service Operators:Evidence from Selected Nigerian Deposit Money Banks.

Abstract

This study sought to specifically ascertain the impact of operating expense on the Price Book
Value of Nigerian DMBs; ascertain the impact of asset management on the Price Book Value of
Nigerian DMBs, and finally to ascertain the impact of bank size on the Price Book Value of
Nigerian DMBs. Data were retrieved secondarily from the audited statement of the sampled banks
during 2009-2019. A panel regression was employed and the results of the inferential statistics
indicate that adopted surrogates for management quality have a significant impact on the price
book value being the proxy for operational efficiency of the sampled DMBs. This implies that banks
with efficient management quality perform better than those with poor management quality. The
study recommends that For Nigerian DMBs to achieve enhanced and sustained profitability,
management strategies need to be instituted with a view of ensuring operating expenses
minimization to prevent a systemic collapse.