The Effects of Financial Statement Analysis on Investment Decision Making by Commercial Banks. Case study; United Bank of Africa Plc. (UBA Cameroon). (original) (raw)

2017, The Effect of Financial Statement Analysis on Investment Decision Making by Commercial Banks. Case study; United Bank of Africa Plc. (UBA Cameroon).

This study on the effect of financial statement analysis on investment decision making in commercial banks: Case study UBA Cameron Plc. sought out to establish the effect of trend analysis, ratio analysis and cost-volume/profit analysis on investment decision making in UBA Plc. Using regression method of analysis we established that trend analysis, ratio analysis and cost￾volume/profit analysis have significant effects on investment decision making of UBA Plc. In conducting this research we used secondary data. Furthermore, quantitative and descriptive methods of analysis were adopted as well as tables, frequency/simple percentage methods, and ttest method were used to examine the effect of trend analysis, ratio analysis and costvolume/profit analysis on investment decision making. Thus, the findings implied that a unit change in the trend analysis, cost-volume/profit analysis and ratio analysis resulted into a change in investment decision making in UBA Plc. Therefore, we recommended that, users of financial statements need to have at least, a fair knowledge of accounting so as to enable them understand and appreciate accounting information and financial ratios should be used with careful examination and proper understanding of the meaning, implication and effect of the actual figures shown in financial statements, in order to avoid making wrong judgments, conclusions and decision