<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper examines the causality between fraud and bank performance in Nigeria over the period 2000-2016 for quarterly financial data using Johansen’s Multivariate Cointegration Model and Vector Autoregressive (VAR) Granger Causality analysis. The results show a long-run relationship between the variables. Bank performance was found to be linked to Granger fraud variables and vice versa at 10% significant level. This study reveals that there was a direct causal relationship between bank performance and fraud because increase in fraudulent activities in the banking sector leads to reduction in bank performance. Hence, this study recommends that internal control systems of banks should be strengthened so as to detect and prevent fraud. In this way, bank assets would be protected.</p></abstract>

This paper examines the causality between fraud and bank performance in Nigeria over the period 2000-2016 for quarterly financial data using Johansen’s Multivariate Cointegration Model and Vector Autoregressive (VAR) Granger Causality analysis. The results show a long-run relationship between the variables. Bank performance was found to be linked to Granger fraud variables and vice versa at 10% significant level. This study reveals that there was a direct causal relationship between bank performance and fraud because increase in fraudulent activities in the banking sector leads to reduction in bank performance. Hence, this study recommends that internal control systems of banks should be strengthened so as to detect and prevent fraud. In this way, bank assets would be protected.

Fraud and Bank Performance in Nigeria – Var Granger Causality Analysis

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Fraud and Bank Performance in Nigeria \u2013 Var Granger Causality Analysis"}

This paper examines the causality between fraud and bank performance in Nigeria over the period 2000-2016 for quarterly financial data using Johansen’s...

Fraud and Bank Performance in Nigeria – Var Granger Causality Analysis

Data publikacji: 31 mar 2020

Zakres stron: 20 - 26

Otrzymano: 02 sty 2019

Przyjęty: 11 lut 2020

DOI: https://doi.org/10.2478/fiqf-2020-0003

Słowa kluczowe
Granger Causality, Fraud, Bank Performance, NDIC, Nigeria

© 2020 Taiwo A. Muritala et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Fraud and Bank Performance in Nigeria – Var Granger Causality Analysis

Data publikacji: 31 mar 2020

Zakres stron: 20 - 26

Otrzymano: 02 sty 2019

Przyjęty: 11 lut 2020

DOI: https://doi.org/10.2478/fiqf-2020-0003

Słowa kluczoweGranger Causality, Fraud, Bank Performance, NDIC, Nigeria

© 2020 Taiwo A. Muritala et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Słowa kluczowe
Granger Causality, Fraud, Bank Performance, NDIC, Nigeria