Abstract:
This study assessed the performance assessment and investment decision
making of commercial bank customers based on the financial statements,
focusing on the case of customers of ten selected commercial banks in the
Accra Metropolis. The study discussed agency theory, efficient market
hypothesis, the concept of performance assessment and investment decision
making as part of the theoretical and conceptual reviews. This study utilised
the positivism research paradigm and the quantitative research approach. The
study was analysed using descriptive statistics to examine the the performance
assessment and investment decision making of commercial bank customers
based on the financial statements. In all, 320 customers from the ten selected
commercial banks in the Accra Metropolis were included in the study, and the
research employed a questionnaire to elicit the required data for the study. The
findings demonstrated that ratio analysis and common size analysis exhibited
weak and statistically non-significant relationships with dividends payment
decisions, vertical and horizontal analyses were found to have strong positive
and statistically significant effects. Also, the study found out that that ratio
analysis and vertical analysis had weak and non-significant impacts. Lastly,
the findings revealed significant positive impacts across all four analytical
methods. Based on the results, it was recommended that banks should offer
educational programs and workshops for their customers to better understand
financial statement analysis techniques.
