Original Research Article | OPEN ACCESS
Financial Statement Analyses and Investment Decision of Nigerian Banks

W. A. Sanyaolu1 , Jimoh Odunayo2 , I. O. Akintan3 , G T. Ogunmefun4 ,

1Department of Accounting, Dominican University, Ibadan; 2Finance Controller, Q and Q LTD; 3Department of Business and Finance, Crescent University; 4Bursary Unit, Crescent University, Abeokuta.

For correspondence:-  W. Sanyaolu   Email: abbeysanyaolu15@yahoo.com

Received: October 8, 2020        Accepted: December 20, 2020        Published: December 31, 2020

Citation: Sanyaolu WA, Odunayo J, Akintan IO, Ogunmefun GT, Financial Statement Analyses and Investment Decision of Nigerian Banks. Account Tax Rev 2020; 4(4):32-43 doi:

© 2020 The authors.
This is an Open Access article that uses a funding model which does not charge readers or their institutions for access and distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0) and the Budapest Open Access Initiative (http://www.budapestopenaccessinitiative.org/read), which permit unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited..


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.  

Keywords: Financial statement analysis, investment decision, profitability, financial leverage and liquidity

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