Browsing by Author "Adedeji Daniel Gbadebo"

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    BTC price volatility: Fundamentals versus information
    (Cogent Business & Management, 2021) Adedeji Daniel Gbadebo; Ahmed Oluwatobi Adekunle; Wole Adedokun; Lukman Adebayo-Oke Abdulrauf; Joseph Akande
    This paper offers a plausible response to “what explains the sporadic volatility in the price of Bitcoin?” We hypothesized that market “fundamentals” and “information demands” are key drivers of Bitcoin’s unpredictable price fluctuation. We adopt the transfer-function [Autoregressive Distributed Lag, ARDL] model and its Bounds testing approach to verify how the volatility of the price of Bitcoin responds to its transaction volume, cryptocurrency market capitalisation, world market equity index and Google search. We found the existence of long-run coin tegration relation and observed that all the variables except the equity index positively explain the volatility of Bitcoin price. The result established evidence that market fundamentals drive erratic swing in Bitcoin price than information.
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    How Does Financial Risk Management Impact Financial Performance of Microfinance Banks?
    (ACTA UNIVERSITATIS DANUBIUS OECONOMICA, 2024) Lukman Adebayo-Oke Abdulrauf; Sherifdeen Adebola Rabiu; Joseph Olorunfemi Akande; Adedeji Daniel Gbadebo
    : Microfinance banks (MFBs) in Nigeria play an important role of delivering financial services to the underserved population and low-income individuals. MFBs are exposed to various financial risks, including borrower defaults and liquidity management, posing serious survival threats. We apply the autoregressive distributive lag (ARDL) regression, on published data from 1993 to 2022, to confirm how financial risk management of the MFBs in Nigeria impacts their financial performance. The finding from the short run of the main (ROA) estimation identifies that except for the loan-deposit magnitude, which is insignificant, the coefficients on capital adequacy strength, risk asset quality, liquidity strength and loan loss provision are significant. For the long run, capital adequacy, liquidity, risk asset quality and loan loss provision have significant coefficient while loan-deposit magnitude has an insignificant coefficient. The lag term of error correction is negative (-1.60) and significant, implying that the model would converge to equilibrium upon any perturbation. Similar results are evident when the return on equity is considered as a measure of financial performance to verify the sensitivity of the outcomes. This suggests the estimation is not sensitive to any performance measure used. The findings underscore the importance of capital adequacy and liquidity strength for improving the financial performance as well as the detrimental impact of risk asset quality and high loan loss provisions on the MFBs. To ensure enhanced financial performance, sustainability and effectiveness, we recommend offer that policy markets should different regulatory measures including recapitalization, reshaping of risk asset holdings, regulating loan loss provisions, clarifying regulations on loan-deposit ratios, and regulating liquidity levels.