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Influence of Financial Statement Analysis on the Investment Decisions of Portfolio Managers

Accounting2025, Undergraduate

This study examined the influence of financial statement analysis on the investment decisions of portfolio managers in Nigeria. A descriptive survey was conducted with fund and portfolio managers in investment companies using a structured questionnaire. Data were analysed using descriptive statistics and regression analysis. The findings revealed that ratio analysis, earnings quality assessment, and cash flow evaluation significantly shaped asset allocation and security selection decisions. The study, however, found that forward-looking information and market sentiment also played significant roles. It recommends strengthening the integration of fundamental analysis with market intelligence in investment processes.

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