The Role of Management Equity Holding on Liquidity and Profitability of Listed Deposit Money Banks in Nigeria
This study determined the moderating influence of management equity holdings on the relationship between liquidity and profitability of listed Nigerian deposit money banks. Correlational research design was used and secondary data was extracted from the financial statements of deposit money banks for a period of 2018-2024. The data were analysed using Arellano-Bond dynamic panel-data estimation technique GMM. The findings showed a positive and non-significant relationship between loan to assets ratio and profitability (ROA). However, a positive and significant influence between liquid asset ratio and profitability was uncovered. The combined effect of loan to asset ratio and management equity holding shows a positive and significant effect on profitability (ROA) implying that management equity holding has a positive and significant moderating influence on liquidity and profitability of listed Nigerian deposit money banks. The study concludes that management equity holdings moderate the inverse relationship between liquidity and profitability of listed Nigerian deposit money banks, hence the need for higher management equity holdings cannot be underestimated since this will not only eliminate agency conflicts but will also influence profitability of deposit money banks in Nigeria. Keywords: Liquidity, Profitability, Management Equity Holding, Nigerian Deposit Money Banks
Keywords: Liquidity, Profitability, Management Equity Holding, Nigerian Deposit Money Banks
Citation: Ishaku, A., Muhammad, A.U., Phd, , Gurama, Z., & Phd, (2025). The Role of Management Equity Holding on Liquidity and Profitability of Listed Deposit Money Banks in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 10(3), 66-74.