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Abstract
The study investigates the nature of relationship between accounting information anddeposit
money bank lending decision in Nigeria. Expost facto research design was adopted and secondary data were sourced fromtheannual
reports of the fourteen (14) deposit money banks and all the thirteen (13) industrial goodscompanies listed on the Nigerian Stock Exchange as at 31
st December, 2018. OrdinaryLeast
Square regression (OLS) and T-statistic techniques were used to analyse the data of thestudy. The results from the findings of the analyses showed that cash availability was foundtoexert apositive and significant relationship with deposit money bank lending decision. Borrowingfirms’ characteristics was found to exert a negative but significant relationship withdeposit
money bank lending decision. Also from the finding, Statement of financial position was foundto rank first among the three popularly used financial statements; followed by statement ofcash flow which comes second in the ranking and finally, income statement which is theleast
ranked among the financial statement.. Based on these findings, this study recommendsthat
cash availability is an element that should not be undermined by deposit moneybanks. Therefore there should be a constant check on the minimum reserve that is kept inthebank. Also, borrowing firm characteristics should not be solely relied on as a major determinant ofdeposit money bank lending decision. Finally, deposit money banks should make statement offinancial position and statement of cash flow mandatory as part of the requirements fromloanapplicants. On the other hand, income statement should not be solely depended uponwhenmaking lending decision and as such should not be mandatory as part of the requirements fromborrowing firm in lending decision.
money bank lending decision in Nigeria. Expost facto research design was adopted and secondary data were sourced fromtheannual
reports of the fourteen (14) deposit money banks and all the thirteen (13) industrial goodscompanies listed on the Nigerian Stock Exchange as at 31
st December, 2018. OrdinaryLeast
Square regression (OLS) and T-statistic techniques were used to analyse the data of thestudy. The results from the findings of the analyses showed that cash availability was foundtoexert apositive and significant relationship with deposit money bank lending decision. Borrowingfirms’ characteristics was found to exert a negative but significant relationship withdeposit
money bank lending decision. Also from the finding, Statement of financial position was foundto rank first among the three popularly used financial statements; followed by statement ofcash flow which comes second in the ranking and finally, income statement which is theleast
ranked among the financial statement.. Based on these findings, this study recommendsthat
cash availability is an element that should not be undermined by deposit moneybanks. Therefore there should be a constant check on the minimum reserve that is kept inthebank. Also, borrowing firm characteristics should not be solely relied on as a major determinant ofdeposit money bank lending decision. Finally, deposit money banks should make statement offinancial position and statement of cash flow mandatory as part of the requirements fromloanapplicants. On the other hand, income statement should not be solely depended uponwhenmaking lending decision and as such should not be mandatory as part of the requirements fromborrowing firm in lending decision.
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