Impact Of Accounting Information On Bank Lending Decisions (Case Study Of First Bank Nigeria Plc)
ABSTRACT
A great deal of useful
information comes from accounting functions
as it provides data which when processed, serves as useful information to the management
in its planning process. The information provided by the accounting functions
serves as an important
and effective tool in bank lending decisions because it provides
a picture
of the performance (income statement) of an organization and its current
financial position (balance sheet).
Such accounting information as may be contained in the financials
of a borrowing firm includes cash balance, profit
level and monetary
value of assets which
can be used as collaterals. The purpose of this paper
is to examine the impact
of accounting information system on bank lending decisions
(a case study of First Bank
Nigeria Plc). The data collected
were analysed using the product
moment correlation
coefficient (PMCC) technique. The result suggests
that accounting information (proxied by profit margin, returns
on equity and returns on assets)
has a significant relationship
on
bank lending decisions (proxied by loan
and advances). The implication of this result is a policy shift on the part of the government towards adequate financial reporting amongst firms in Nigeria, by ensuring external auditors and audit committees
of borrowing firms comply
with government regulations as it affects financial reporting.
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CHINAECHEREM, M (2021). Impact Of Accounting Information On Bank Lending Decisions (Case Study Of First Bank Nigeria Plc). Repository.mouau.edu.ng: Retrieved Nov 24, 2024, from https://repository.mouau.edu.ng/work/view/impact-of-accounting-information-on-bank-lending-decisions-case-study-of-first-bank-nigeria-plc-7-2
MOUAU/ACC/14/24647, CHINAECHEREM. "Impact Of Accounting Information On Bank Lending Decisions (Case Study Of First Bank Nigeria Plc)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 06 Jan. 2021, https://repository.mouau.edu.ng/work/view/impact-of-accounting-information-on-bank-lending-decisions-case-study-of-first-bank-nigeria-plc-7-2. Accessed 24 Nov. 2024.
MOUAU/ACC/14/24647, CHINAECHEREM. "Impact Of Accounting Information On Bank Lending Decisions (Case Study Of First Bank Nigeria Plc)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 06 Jan. 2021. Web. 24 Nov. 2024. < https://repository.mouau.edu.ng/work/view/impact-of-accounting-information-on-bank-lending-decisions-case-study-of-first-bank-nigeria-plc-7-2 >.
MOUAU/ACC/14/24647, CHINAECHEREM. "Impact Of Accounting Information On Bank Lending Decisions (Case Study Of First Bank Nigeria Plc)" Repository.mouau.edu.ng (2021). Accessed 24 Nov. 2024. https://repository.mouau.edu.ng/work/view/impact-of-accounting-information-on-bank-lending-decisions-case-study-of-first-bank-nigeria-plc-7-2