DOES FINANCIAL FLEXIBILITY ENHANCE THE PROFITABILITY OF MONEY DEPOSIT BANKS? EVIDENCE FROM NIGERIA

This studied examined the effect of financial flexibility on profitability of Money Deposit Banks in Nigeria. The study adopted the survey method and data were collected using a structured questionnaire and these were complemented with oral interview. From a population of 694, a sample of 255 was selected through multistage sampling technique. The hypothesis was tested using the probability values anchored on simple linear regression estimations. The findings revealed that flexible financial practice in the firms studied has a positive effect on profitability (p-value =0.000, R2 = 0.611682). Based on the findings, the study concludes that financial flexibility enhances profitability of Nigerian Money Deposit Banks. Among others, it is recommended that an appropriate flexibility mix should be adopted by deposit money banks in order to increase and sustain the profitability of their firms