Published Financial Statement as a Correlate of Investment Decision among Commercial Bank Stakeholders in Nigeria
This study investigated published financial statement as correlate of investment decision among commercial bank stakeholders in Nigeria. A correlation research design was used in the study. 180 users of published financial statement were purposively sampled from Lagos and Ibadan. Data generated were analyzed using Pearson correlation and regression. The findings of the study revealed that, balance sheet is negatively related with investment decision (r= -.483; p<.01) while income statement (r= .249; p<.001), notes on the account (r= .230; p<.001), cash flow statement (r= .202; p<.001), value added statement (r= .328; p<.001) and five-year financial summary (r= .191; p<.01) are positively related with investment decision. Findings also revealed that components of published financial statement significantly predicted good investment decision (R2= .983; F(5,175)=284.5; p<.05) for commercial bank stakeholders. Therefore, it was suggested that Nigeria banks and professional bodies should instigate programs that will increase the knowledge of stakeholders on published financial statement.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1336350Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 4635
 R. Joseph, "The impact of corporate strategy on investment decisions” (Online), 2011. Retrieved from: http://www.scribd.com/doc/52996200/ The-impact-of-corporate-strategy-on-investment-decisions-of Accessed on 12th July 2013.
 R.S. Kaplan, and R. Roll, "Investor evaluation of accounting information: Some empirical evidence”. Journal of Business, 45, 225-257, 2002.
 S.S. MacDonald, and T.W. Koch, "Management of Banking”. Thomson South Western. 2006.
 M. Hung, and K. R. Subramanyam, "Financial statement effects of adopting international accounting standards: the case of Germany”. Review of Accounting Studies, 12, 623-657, 2007.
 International Accounting Standards Board (IASB), "Presentation of Financial Statements. International Accounting Standard 1”. London, England: IASCF, 2009.
 Institute of Chartered Accountants of Nigeria (ICAN) "Financial Reporting and Audit Practice”, Professional Examinations 111 PAPER 16 Study Pack, Lagos: VI Publishing Limited, 2006.
 Olukayode 2009.
 S. Abubakar, "Regulation and the economics of corporate financial reporting in Nigeria” Journal of Management and Enterprises Development, Vol. 7(2), 65–72, 2010.
 U.S. Gautam, "Accountancy”. New Delhi; Vrinda Publications, 2005.
 S. Faboyede, and D. Mukoro, "Financial statement insurance: Restoring Investor Confidence in Nigerian Banks”. Research Journal of Finance and Accounting, Vol 3 (5), 2012.
 I.S. Akinadewo, "Adequacy of Published Financial Statement for Investment Decision-Global experience in the last decade”. Accounting Bridge Programme. Nigeria: Osun State University, 2012.
 M.A. Amedu, "Role of Financial Statement in Investment Decision Making: A Case Study of First Bank of Nigerian Plc”. A B.Sc Project Submitted in The Department of Accountancy, Caritas University Amorji Nike Enugu, 2012.
 O.O. Adesina, "Principles and Practices of Auditing”, Nigeria, Mindex Publishing Co. Ltd: Benin City, 2003.
 J. David, "Financial statement analysis” (Online), 2010; Retrieved from: http://www.papercamp.com/group/financial-statement-analysis-of-david-jones/page-0 Accessed on 13 August 2013.
 Kothari, and Barone, "Conceptual framework for financial reporting”. IASB. Pp. 35-72, 2006.
 K. Zager, and L. Zager, "The role of financial information in decision making process”. Consumer Satisfaction–Global Perspective, Pp. 35-40, 2006.
 A. Martin, "The Impact of Taxation on the Investment Localization Decision in the Context of Globalization” Analele Stiinłifice Ale Universităłii Alexandru Ioan Cuza” Din Iasi, Tomul LVI. Pp. 133-142, 2006.
 A.B. Akinsoyime, "The Objective of Accounting in a Dynamic Society Seminar”. NCAI: Jos., 1990
 D. Bucataru, "Gestiunea financiară a întreprinderii”, Partea I, Sedcom Libris Publ. H., Iasi., 2002.
 R.M. Frankel, M.F. Johnson, and K.K. Nelson, "The relation between auditors’ fees for nonaudit services and earnings management”. The Accounting Review, 77, 71-105, 2002.
 C. Ekeigwe, "Audit Committee Roles in Financial Reporting”. Discussion Notes - National Conference on Financial Reporting Responsibilities of Directors and Audit Committees, Institute of Chartered Accountants of Nigeria Training Centre,53-66, 1995b.
 R.W. Holthausen, and R.L. Watts, "The relevance of the value-relevance literature for financial accounting standard setting”, Journal of Accounting and Economics, 31, 3–75, 2001.
 D. Hirshleifer, K. Hou, S.H. Teoh, and Y. Zhang, "Do investors overvalue firms with bloated balance sheets?” Journal of Accounting & Economics, 38 (1-3), 297-331, 2004.