Effect of Financial Information on Investment Decision Making By Shareholders of Banks in Nigeria

Abstract

The objective of this paper is to empirically investigate the effect of financial information on investment decision of shareholders of banks in Nigeria. The data for the study were extracted from published annual reports of five selected banks in Nigeria from 2009 to 2015. Correlation matrix and regression analysis were deployed to establish the relationship between the variables. The results revealed a positive relationship, indicating that dividend per share have significant influence on investment decision of shareholders of banks in Nigeria. The study recommends that both existing and prospective investors can factor financial information relating to dividend paid per share while making investment decision in shares of Nigerian banks; as dividend per share is positively correlated with investment decisions of shareholders.