FINANCIAL STATEMENT ANALYSIS AND SHAREHOLDERS' INVESTMENT DECISIONS OF DEPOSIT MONEY BANKS IN NIGERIA

https://doi.org/10.5281/zenodo.10822544

Authors

  • Udochukwu Chikaodili Nkemdilim Department of Accounting, Alex Ekwueme Federal University Ndufu Alike Ikwo
  • Promise Nwakaego Edeogu (PhD), Department of Accounting, Alex Ekwueme Federal University Ndufu Alike Ikwo
  • Nnam Hilary Ikechukwu Department of Accounting, Alex Ekwueme Federal University Ndufu Alike Ikwo
  • Oko Roseline Ali (PhD) Department of Banking and Finance Alex Ekwueme Federal University Ndufu Alike Ikwo

Keywords:

Liquidity analysis, Profitability analysis and Equity shareholding

Abstract

This study determined the effect of financial statement analysis on shareholders' investment decisions among listed deposit money banks in Nigeria. The specific objective was to examine the extent to which liquidity analysis and profitability analysis affect equity shareholding. The ex-post facto research design was adopted. A sample of ten deposit money banks was used. Data for the study were extracted from the published financial statements of the sampled banks from 2013 to 2022. Ordinary Least Squares (OLS) technique was employed to test the hypotheses while descriptive statistical analysis was used to the data. The findings revealed that liquidity analysis has a positive non-significant effect on equity shareholding among listed deposit money banks in Nigeria (p-value = 0.0540); profitability analysis has a significant positive effect on equity shareholding among listed deposit money banks in Nigeria (p-value = 0.000). The study recommends that deposit money banks in Nigeria should maintain a judicious approach to leverage, periodically reassessing debt levels to strike a balance that optimizes financial health while mitigating excessive risk, thereby fostering investor confidence

Published

2024-03-15

How to Cite

Udochukwu , C. N., Edeogu, P. N., Nnam, H. I., & Oko, R. A. (2024). FINANCIAL STATEMENT ANALYSIS AND SHAREHOLDERS’ INVESTMENT DECISIONS OF DEPOSIT MONEY BANKS IN NIGERIA. SADI International Journal of Management and Accounting (SIJMA), 11(1), 11–24. https://doi.org/10.5281/zenodo.10822544

Issue

Vol. 11 No. 1 (2024): January-March

Section

Original Peer Review Articles
Copyright & Licensing

Copyright (c) 2024 SADI International Journal of Management and Accounting (SIJMA)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

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