Regression and nested ANOVA analysis of Financial Holding Companies in Nigeria
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Date
2021
Authors
Onyeka-Ubaka, J.N.
Ogundeji, R.K.
Ewruje, T.O.
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Scientific Research and Development
Abstract
Components of variance due to average effects among groups, transaction effects common to subgroups, and transaction effects peculiar to individual banks are captured using multiple linear regression and nested analysis of variance (ANOVA) as statistical tools. The profitability, asset quality and equity capital adequacy for each of the subsidiaries (commercial bank, pension managers, asset management and capital market) were obtained from the Financial Holdings Companies annual financial records available on their respective websites (2012-2019). The paper explicates the applicability of these statistical tools to three financial institutions (groups) across four subsidiaries (subgroups) of the Financial Holding Companies in Nigeria with financial holding companies chosen as the fixed factors and banks‟ subsidiaries as random factors nested within the financial holding companies. The results revealed that the commercial banks of each of the three financial holding companies dominate other subsidiaries as though the other subsidiaries are not in existence due to the high volume of transactions and cash flow. The nested ANOVA analysis showed variations in profits among the subsidiaries of First City Monument Bank (FCMB) and STABIC IBTC with FCMB also showing high mean total assets. There is no significant variation among the subsidiaries in relation to their equities. Based on the findings, we, therefore, submit that the policymakers and stakeholders should create awareness and increase public enlightenment campaign for the
populace to imbibe the culture of using other subsidiaries as well for quick economic growth and development of Nigeria.
Description
Keywords
Subsidiaries, Financial Holding Company, Equity, Multiple Linear Regression, Nested ANOVA
Citation
APA 2007