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Authors
1Ndu, Ndu Ogbonnaya
2Nnado, Ifeanyi Celestine
3Udeh, Amaka Jennifer
4Agbo, Obianuju Emmaculata
5Arinze, Stanley Nweke
1, 2, 3, 4 & 5 Department of Accountancy, Enugu State University of Science and Technology, Enugu
2 Corresponding Author & email addresses: [email protected]; +2348038113063
ABSTRACT
This study examined the relationship between Balanced Scorecard (BSC) perspectives and organizational performance of selected deposit money banks (DMBs) in Nigeria. Using collated panel data from twelve (12) banks covering eleven years with 122 observations, the analysis was performed through the panel least squares (PLS) technique using Eviews 10.0. Organizational performance was proxied by return on assets (ROA) while independent variables representing the BSC perspectives are proxied by financial (Total Asset Turnover – TA_TRN), customer (Customer Deposit Turnover – CDEP_TRN) and learning and growth (Shareholders’ Fund – SHF_BN). The regression results showed coefficient of –0.659751 (p-value = 0.1376) indicating that TA_TRN has a negative nonsignificant effect on ROA; 0.904217 (p-value = 0.1441) also indicated that CDEP_TRN has positive nonsignificant effect on ROA; and 0.001514 (p-value = 0.3723) shows that SHF_BN also has positive nonsignificant effect on ROA, with a coefficient of 2.350361 (p-value = 0.0019). The overall model recorded an R-squared of 0.0787, Adjusted R-squared of –0.0200, F-statistic = 0.7969 (p-value = 0.5059) and Durbin-Watson = 3.2873 later adjusted. These results indicate that each BSC perspective proxy exerted a non-significant influence on bank performance at the 5 percent level. Though customer and learning perspectives showed positive relationships albeit statistically insignificant, it connotes potential long-term benefits. The study concurs that reliance on financial measures alone is inadequate for explaining organizational performance; integrating customer and learning perspectives enhances sustainability and strategic alignment. It recommends that Nigerian banks strengthen staff development and customer relationship strategies alongside financial controls to achieve balanced and enduring performance improvements.
Keywords: Balance Scorecard, Performance, ROA, DMBs
