Impact Of Investment Decisions On Financial Performance Of Listed Firms In Nigeria

Abstract

Investment decisions play an important role in enhancing efficiency and productivity of banks. However, taking advantage of various investment opportunities has continued to pose a major threat because of its potential to cause financial risks to banks. Hence, this study examined the impact of investment decisions on financial performance of commercial banks in Nigeria. Data obtained from the financial reports of six (6) selected commercial banks in Nigeria for a period of five years (5) from 2020 to 2024 were analysed using Generalized method of moments (GMM), and statis panel. Findings revealed that capital investment has a significant impact on ROA in Nigeria. The study also revealed a significant relationship exist between financial investment and ROA. Conclusively, investment decisions have positive significant impact on performance of banks in Nigeria. That is investment decisions enhance the performance of banks tremendously in Nigeria. The study therefore recommends that banks should ensure they are liquid enough to take advantage of capital and financial investment as these investment decisions are seen to positive and significantly impact financial performance of banks. Keywords: Financial investment; Capital investment; Investment Decisions; Financial Performance; Banks.