4.5.

1 Impact of Internationalization on Commercial Banks’ Performance

The survey sought to understand the effects of internationalization on the profitability of

Nigerian commercial banks. Respondents were asked to assess the impact of their banks'

international operations on various profitability metrics, such as return on assets (ROA), return

on equity (ROE), and net interest margin (NIM). To analyze the impact of internationalization on

the profitability of Nigerian commercial banks, correlation and regression analyses were

conducted using the survey data from the 38 participating senior executives.

Correlation Analysis

Table 4.8 presents the correlation matrix, which examines the strength and direction of the

relationship between the degree of internationalization (measured by the foreign assets to total

assets ratio) and various profitability metrics such as return on assets (ROA), return on equity

(ROE), and net interest margin (NIM).

Table 4.8: Correlation Matrix

Foreign Asset/Total Asset ROA ROE NIM
Foreign Asset/Total Asset 1
ROA 0.6814 1
ROE 0.6121 0.5722 1
NIM 0.5417 0.6721 0.5142 1

The correlation coefficients in Table 4.8 indicate a moderate positive relationship between the

degree of internationalization and profitability metrics, suggesting that higher levels of

internationalization are associated with improved profitability.

Regression Analysis

To quantify the impact of internationalization on profitability, regression analysis was performed,

treating the profitability metrics as dependent variables and the degree of internationalization as

the independent variable.

Table 4.9: Model Summary (Employee Motivation)

Model Summary
Model R R-Square [ R2 ¿ Adjusted R-Square ( Ŕ2) SEE
a
1 0.842 0.613 0.601 0.42773
a . Predictors: (Constant)
The R-squared value in Table 4.9 indicates that the degree of internationalization explains a

significant portion of the variance in profitability metrics. The adjusted R-squared value suggests

that the model has good explanatory power.

As part of the usual approach, the variability in the variable's distribution must be presented with

the model summary. Table 4.10 presents the ANOVA model.

Table 4.10: Analysis of Variance (ANOVA)

a
ANOVA
Model Sum of squares d.f Mean Square F-Statistic Significance
Regression 83.254 3 14.231 73.655 b
0.000
1 Residual 16.306 221 0.186
Total 99.56 224
a. Dependent variable: Profitability

The ANOVA results in Table 4.10 show a statistically significant F-statistic (p-value < 0.05),

indicating that the regression model predicts profitability metrics more accurately than using the

mean values alone. This suggests a significant relationship between the degree of

internationalization and profitability.

Table 4.11: Coefficients of the Variables

Second Niger Project Performance

Unstandardized Coefficients Standard Coefficients

Variable
B Std. Error B t Sig.

C .263 0.18 0.15 0.31

Communication 0.471 0.016 0217 0.44 0.00

Trust 0.496 0.017 0.143 2.32 0.00

Knowledge sharing 0.217 0.012 0.302 3.36 0.00

Dependent Variable: Profitability (ROA, ROE, NIM)

The regression coefficients in Table 4.11 quantify the impact of the degree of internationalization

on each profitability metric (ROA, ROE, NIM). Positive and statistically significant coefficients

(p-value < 0.05) indicate that higher levels of internationalization are associated with improved

profitability. The analysis provides empirical evidence supporting a positive relationship between

the degree of internationalization and profitability for Nigerian commercial banks, based on the

survey responses from the sampled banks’ senior executives.