Percolation Threshold for Closed Packed Spheres

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test which shows that a strong linear relationship exists between the dependent variable and explanatory variables put together. The Durbin-Watson value of 2.42 is still within the acceptable range indicating the absence of serial auto-correction in the model.

On the coefficient signs and values which determine the direction and contribution of each explanatory variable to the behaviour of earnings per share (EPS) for the period studied, it can be observed from table 4.9 that the coefficients of CBB, SIZE and AGE have positive coefficient signs. However, only the variable of SIZE passed the significance test at 1% level of confidence; while CBB and AGE are not statistically significant. What this implies is that a unit increase in CBB will most likely lead to an insignificant 0.114 increases in EPS. On the other hand, the variable of leverage (LEV) has a negative sign and equally not significant at all levels.

Based on the outcome of the model, only the variable of SIZE significantly affects EPS, while CBB can cause a positive effect on earnings per share (EPS) in line with the apriori expectation, but not significantly.

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and 4.9 were used in testing hypotheses four (Ho4) and five (Ho5). The decision rules are given below.

 Decision Rule (Paired Sample T-test):

If p-value (Sig.) is less than 0.05, we reject the null hypothesis and accept the alternative- meaning that the particular performance variable of both groups (CB banks and Domestic banks) do in fact differ significantly; or the null hypotheses that they do not differ would be rejected.

 Decision Rule (Panel regression estimation):

The null hypothesis will be rejected if the calculated t-statistic is greater than the t-critical value, otherwise the null shall be accepted and the alternative rejected. The t-critical value is 1.67 at 79 degree of freedom at 0.05 (5%) level of significance under the 2-tailed test.

Table 4.10a Summary of Hypotheses Testing (Paired Sample T-Test) Variables

(CBBs vs DBs) T Df

Sig.

(2-tailed)

Decision

Ho1 Pair 1

Profitability (Cross-border vs

Domestic banks) 1.50 79 0.141 Accept null

Ho2 Pair 2

Stock Performance (Cross-border

vs Domestic banks) -4.07 79 0.000** Reject null

Ho3 Pair 3

Liquidity (Cross-border vs

Domestic banks) 1.48 79 0.147 Accept null

Source: Researchers Compilation via SPSS version 22 output (2018)

**.Significant at 1% (99%) level of confidence Hypothesis One:

Ho1: There is no significant difference in the profitability of cross border deposit money banks and their domestic counterparts.

As shown in table 410a, the p-value of profitability has a value of 0.141 which is greater than 0.05 under the 2-tailed test. Based on the decision rule, we do not have enough evidence to reject

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the null hypothesis. This implies that bank profitability (measured as return on assets) of CB banks and domestic banks do not differ significantly within the periods covered by the study.

Hypothesis Two

Ho2:There is no significant difference in the stock price performance of Cross Border Deposit Money Banks and their domestic counterparts.

As shown in table 4.10a, the p-value of stock performance has a value of 0.000 which is lesser than 0.05 under the 2-tailed test. Based on that, we have enough evidence to reject the null hypothesis which states that stock performance of CB banks and domestic banks does not differ significantly. Thus, the null hypothesis in hereby, rejected.

Hypothesis Three

Ho3:There is no significant difference in the liquidity of Nigeria Cross Border Deposit Money Banks and their domestic counterparts across Africa.

From table 4.10a, the p-value of liquidity has a value of 0.147 which is greater than 0.05 under the 2-tailed test. As a result of the decision rule, we do not have enough evidence to reject the null hypothesis that liquidity indicator of cross-border and domestic banks do not differ significantly; thus the null hypothesis in hereby accepted. This implies that there is no significant difference between the liquidity indicator ratios of cross-border banks when compared to that of the domestic banks within the period covered by this study,

Table 4.10b Summary of Hypotheses Testing (Panel Regression) Dependent

Variable(s)

Independent Variable

t-statistics p-value (Sig.)

Significant or not

Decision Ho4 Bank Profitability

(PAT)

Cross-border banking (CBB)

1.835228 0.0679* Sig Reject null Ho5 Stock Performance

(EPS)

Cross-border banking (CBB)

0.523982 0.6009 NSig Accept null Source: Researcher’s Compilation via Eviews version 9 output (2018)

*Significant at 10% (90%) level of confidence

131 Hypothesis Four

Ho4:There is no significant relationship between Cross border banking (CBB) activities and profitability performance of Deposit Money banks in Nigeria.

It was observed from table 4.10b that CBB with a calculated t-value of 1.835 which is greater than the critical t-value of 1.67 at 5% level of significance under the two-tailed test. Hence, we can reject the null hypothesis and accept the alternative form. This implies that there is a significant relationship between cross-border banking (CBB) and bank profitability.

Hypothesis Five

Ho5:There is no significant relationship between Cross border banking (CBB) activities and stock price performance of Deposit Money banks in Nigeria.

Also from table 4.10b, it can be observed that CBB with a calculated t-value of 0.6009 is lesser than the critical t-value of 1.67 at 5% level of significance under the two-tailed test.

Hence, we accept the null hypothesis and reject the alternative. Hence, it can be concluded that there is no significant relationship between cross-border banking and stock performance.