The Effects Of Socio-Economic And Political Conflicts On Corporate Finance

The main objective of the study was to investigate the effects of socioeconomic and political crisis on the corporate finance of banking institutions in Cameroon. Four specific variables of the study were; to assess the effects of socio-economic and political crisis on capital structure, to determine the effects of socio-economic and political crisis on customer’s deposit accounts, to assess the impact of socio-economic and political crisis on bank loans and to evaluate the effects of socio-economic and political crisis on dividend policy. The study was quantitative in nature. The sample size was made up of 15
banking institutions that were randomly selected. The data was analyzed using regression analysis. The result shows that there are significant effects of conflicts on capital structure, deposit account and bank loans. But there was an insignificant effect of socio-economic and political crisis on dividend policy. The researcher recommended the banking institutions to stay intentional to strategic objectives and diversification of investments in order to remain efficient in the banking industry.