ABSTRACT

The focus of this research work is based on the impact of shareholder’s investment decision on bank performance in Nigeria. The major objectives of the study was to find out the relationship between shareholders’ investment decision and bank performance indicators. Secondary data were obtained from the sampled banks (that is United Bank for Africa, Zenith Bank of Nigeria, Guarantee Trust Bank). Analysis was made based on data sourced from sample deposit money banks verified sources such as their facts books and Annual Reports for a period of twelve years (2010-2021). Data compilation were analyzed using descriptive and Inferential statistics. (Regression analysis, ANOVA, and correlations coefficients). Both descriptive and inferential statistics were used in data analysis and the finding reveal that liquidity ratio is a significant predictor of Shareholders investment decisions, while capital adequacy ratio and profitability ratio does not have a significant impact on shareholders’ investment decisions. Based on the results, it is recommended that Banks should pay greater attention to its liquidity ratio and work towards having a ratio above that recommended by Central Bank of Nigeria.