ANALYSIS OF FINANCIAL STATEMENT AND INVESTMENT DECISION OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study is to assess the analysis of financial statement on investment decision of deposit money banks in Nigeria. Specifically, the study intends to; evaluate whether return on equity has significant effect on ordinary share capital of deposit money banks in Nigeria, and determine the significant effect of debt-equity ratio on ordinary share capital of deposit money banks in Nigeria.

Ex-Post Facto research design was adopted. This study used purposively sample to select ten deposit money banks in Nigeria for the study. Data were generated from the annual accounts of the sampled banks. Multiple regression analysis was employed to test the hypotheses. The result shows that return on assets, and debt-equity have statistically insignificant effect on ordinary share capital. The researcher recommended that banks should always thrive on being profitable as this induces subscription to their shares which in turn boost their capital base