For correspondence:-
Received: October 8, 2020 Accepted: December 20, 2020 Published: December 31, 2020
Citation: Financial Statement Analyses and Investment Decision of Nigerian Banks. Account Tax Rev 2005; 4(4):32-43 doi:
© 2005 The authors.
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Abstract
The study examines the effect of financial statement analysis on investment decision of Nigerian deposit money banks. An ex post facto research design was adopted by sourcing data from the annual reports and accounts of the ten sampled banks. The hypotheses of the study were tested using regression involving fixed-effect. It was found that profitability has a significant positive effect on investment decision (P < 0.05); financial leverage has no significant positive effect on investment decision (P > 0.05) and that liquidity has no significant positive effect on investment decision (P > 0.05).Arising from the findings, the study concludes that financial statement analysis exerts a significant positive joint effect on investment decision. The study recommends that banks should always take cognizance of their profitability in particular and financial statement analysis in general so as to attract more investment from investors.
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