What question did this study set out to answer?

The study aims to assess how financial statement manipulations influence investment decisions in the commercial banking sector in Nigeria.

March 26, 2026Open Access

The Impact of Published Financial Statements on Investment Decision-Making in Commercial Banks

Key Points

The study aims to assess how financial statement manipulations influence investment decisions in the commercial banking sector in Nigeria.
Examined historical cases of corporate failures in Nigerian banks
Analyzed the role of accounting practices in investment decisions
Evaluated responses by institutions to mitigate corporate collapses
Financial statement manipulations have led to significant corporate collapses in Nigerian banks.
Institutional measures, including the establishment of AMCON, have been implemented to address these issues.
There is a need for stricter regulations to prevent fraudulent activities in banking.

Abstract

The prevalence of corporate failures and accounting scandals, exemplified by Enron and WorldCom in 2002, alongside global financial crises, has highlighted the significant impact of financial statement manipulations on organizational stability. In Nigeria, the banking sector has similarly experienced corporate collapses, including Cooperative and Commerce Bank (CCB), Orient Bank, and African Continental Bank (ACB), largely due to accounting-related frauds. These events prompted the establishment of the Asset Management Corporation of Nigeria (AMCON) to mitigate corporate failures by acquiring and managing financially distressed banks. This study examines the causes and consequences of accounting manipulations in the Nigerian banking sector and evaluates institutional responses aimed at preventing systemic failures

The Impact of Published Financial Statements on Investment Decision-Making in Commercial Banks

Key Points

Abstract

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