FINANCIAL REPORTING QUALITY AND INVESTMENT DECISIONS OF FIDELITY BANK PLC (2011-2015)

Abstract

This paper examined the impact of financial reporting quality and the investment decisions of investors in the Nigerian Banking Industry with special interest on Fidelity Bank Plc. Correlational research design was adopted for the study.  Both qualitative and quantitative data covering five years: 2011-2015 were collected from the financial statements of the bank after which regression analysis was used to analyse the data. Empirical findings from the study revealed that there is a strong relationship between cash used in and from investment in subsidiaries. It was also found that there is a weak relationship between cash and cash equivalents and investment in assets. The study however, recommended amongst others that deposit money banks should comply fully with the tenets of the financial reporting standards and that the Financial Reporting Council of Nigeria (FRCN) should beef up its monitoring of firms so as to ensure strict adherence to the International Financial Reporting Standards.