期刊名称：European Journal of Business and Social Sciences
印刷版ISSN：2235-767X
出版年度：2017
卷号：6
期号：7
页码：01-11
出版社：European Society of Business and Social Sciences
摘要：iquidity is a concept that many investors fail to consider or understand and as aresult their financial plans fail to come through in such critical times. However, thefact is liquidity or a lack thereof causes more financial problems than almost anyother aspect of finance. This study determined the effects of liquidity management on theperformance of commercial banks. To achieve this the study was guided by the followingspecific objectives; to explore the effect of cash management to financial performance ofcommercial banks; to examine the effect of Loan Repayment on financial performance ofcommercial banks; to assess the effect of investment in non-core business on financialperformance of the commercial banks; to establish effect of liquidity decisions on financialperformance of commercial banks; to evaluate the effect of management competency onfinancial performance of commercial banks. Firm performance was measured usingReturn on Equity (ROE). This study adopted a descriptive research design in solicitinginformation on effects of liquidity management on financial performance of commercialbanks. The target population was 14 commercial banks in Rwanda. The samplingtechnique employed was simple random sampling and the sample size was 42respondents. Primary quantitative data was collected by use of self-administeredstructured questionnaires. The researcher also used secondary data derived from theaudited financial statement of the commercial banks for the period 2014 to 2016. Thedata collected was analyzed, with respect to the study objectives, using both descriptiveand inferential statistics. The data was analyzed using descriptive statistics such as mode,median, mean, standard deviation. Multiple regression analysis was employed todetermine relationship between liquidity management and financial performance ofcommercial banks in Rwanda. Data was presented in tables, charts, figures andmathematical expressions. The findings revealed that holding Liquidity decisions, Cashmanagement, Non-core investment, and Loan repayment.to a constant zero, financialperformance would be at 0.347. A unit increase on Liquidity decisions would lead toincrease in financial performance by a factor of 0.162, a unit increase in Cash managementwould lead to increase in financial performance by a factor of 0.282, a unit increase inNon-core investment would lead to increase in financial performance by a factor of 0.194and unit increase in Loan repayment would lead to increase in financial performance by afactor of 0.211. The study concludes that liquidity risk management has a significantnegative relationship with financial performance of commercial banks. The study alsoconcludes that holding more liquid assets as compared to total assets will lead to lowerreturns to commercial banks in Rwanda but the effect of not significant at 5%. Holdingmore liquid assets as compared to total deposits will lead to lower returns to commercialbanks in Rwanda and the effect is significant at 5%.
关键词：Liquidity decisions; Cash management; Non-core investment; and Loan;repayment; financial performance
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