Accounting Information And Bank Lending Decision
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The purpose of this paper is to examine the impact of accounting information in banks lending
decision. The cluster sampling and simple random sampling techniques were adopted in this ·
study. A sample of one hundred and thirty two companies was selected. A cross-sectional data of
companies for the year 2012 was collected from the Nigerian Stock Exchange Factbook. The data
collected were analysed using the Ordinary Least Square (OLS) regression technique. The result
suggests that accounting information (proxied by value of collateral, cash availability and
borrowing firm's characteristics as contained in the financials) have a significant relationship
with bank lending decision. The implication of this result is a policy shift on the part of
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
Keywords
H Social Sciences (General), HF Commerce, HF5601 Accounting