Performance Assessment And Investment Decision Making Of Commercial Bank Customers Based On The Financial Statements

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.