Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 197

Full Length Research Paper

The nexus between bank size and financial performance: Does internal control adequacy matter?

Akinola Abisola
  • Akinola Abisola
  • Department of Accounting, School of Management and Social Science, Pan-Atlantic University, Lagos, Nigeria.
  • Google Scholar

  •  Received: 11 September 2021
  •  Accepted: 20 October 2021
  •  Published: 31 January 2022


The economic development of any nation is largely dependent on the stability of the nation’s banking industry, because the industry promotes the savings culture of the public, aids capital funding, implements the monetary policy of  a country and promotes the facilitation of international trade. Therefore this study examined the effect of bank size on the financial performance of listed Deposit Money Banks in Nigeria (DMBN). Also, the study examined the moderating effect of internal control adequacy on the relationship between bank size and financial performance. The study adopted an ex-post facto research design because secondary data were extracted from published annual reports of 10 DMB in Nigeria, for a period of 12 years from 2006 to 2017. The data were analyzed using descriptive and inferential statistics (multiple regression analysis). Results from the analysis showed that the proxies of bank size (total assets, number of employees and customers’ deposit) had a cumulative effect on return on asset for financial performance. Also, internal control adequacy as a moderating variable enhanced the effect of bank size on financial performance. Hence, the study concluded that, total asset, number of employees ad customer’s deposit as proxies for bank size had a combined effect on financial performance.


Key words: Bank size, financial performance, Deposit Money Banks in Nigeria (DMBN), internal control.