FINANCIAL DERIVATIVE INSTRUMENTS AND CORPORATE PERFORMANCE

This study examined financial derivative instruments and corporate performance in listed interest taking banks in Nigeria. The specific objectives were to investigate whether derivative asset ratio, derivative liability ratio, derivative trading ratio and derivative information disclosure has significant effect on return on total assets of listed interest taking banks in Nigeria. The secondary source of data collection was adopted in the study where the purposive sampling technique was used to select a sample size of eight (8) listed interest taking banks for the study. Least Square regression analysis was used in this study and the findings revealed that derivative asset ratio, derivative liability ratio and derivative trading ratio has no significant effect on return on total asset while derivative information disclosure has significant effect on return on total asset of listed interest taking banks in Nigeria. The study concluded that derivatives are used for a number of purposes, such as hedging against future price movements of securities or against speculation or getting to trade assets or market. The study recommended among others that firm should increase their loan asset to better improve their profit and that firms should limit their financial derivative liabilities and ensure that financial derivative assets are better utilized.