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Accounting Information And Lending Decision: Does Sustainability Disclosure Matter?

Author

Listed:
  • Hope Osayantin Aifuwa
  • Musa Saidu
  • Osaruese Cynthia Enehizena
  • Albert Osazevbaru

    (University of Benin, Nigeria
    Kwara State University, Nigeria
    University of Benin, Nigeria
    University of Benin, Nigeria)

Abstract

Lending decisions of banks is a function of accounting information of borrowing firms, however, in contemporary times the quality of their accounting information is not encouraging to be used as a yardstick in taking lending decision. Against this backdrop, we investigated the impact of accounting information on commercial banks’ decision to Manufacturing firms in Nigeria. A sample of thirteen industrial listed firms was used. Descriptive and inferential statistics were employed to summarize the data and to draw inference on the population studied. We employed the Ordinary Least Squares in testing the hypotheses stated. Findings revealed that monetary value of collateral positively affects lending decisions of banks, profit level of borrowing form negatively influence the lending decision of banks, while corporate sustainability disclosure positively but insignificantly impact on banks’ lending decisions. The study concluded that accounting information affect banks’ lending decisions, also although corporate sustainability insignificantly influence bank lending decision, it does not matter.

Suggested Citation

  • Hope Osayantin Aifuwa & Musa Saidu & Osaruese Cynthia Enehizena & Albert Osazevbaru, 2019. "Accounting Information And Lending Decision: Does Sustainability Disclosure Matter?," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 8(4), pages 61-89.
    • Handle: RePEc:cpn:umkcjf:v:8:y:2019:i:4:p:61-89
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    References listed on IDEAS

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    Cited by:

    1. Hope Osayantin Aifuwa, 2020. "Sustainability Reporting And Firm Performance In Developing Climes: A Review Of Literature," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 9(1), pages 9-29.
    2. Witness Siwela & Collins C. Ngwakwe, 2024. "Effect of Corporate Environmental Performance on Banks’ Loan Pricing," International Journal of Economics and Financial Issues, Econjournals, vol. 14(3), pages 178-191, May.
    3. Muhammed Lawal Subair & Ramat Titlayo Salman & Ayodeji Fatai Abolarin & Abdulrasheed Taiwo Abdullahi & Akeem Sisofa Othman, 2020. "Board Characteristics And The Likelihood Of Financial Statement Fraud," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 9(1), pages 57-76.
    4. Saidu Musa & Nusirat Ojuolape Gold & Hope Osayantin Aifuwa, 2020. "Board Diversity and Sustainability Reporting: Evidence from Industrial Goods Firms," Business & Management Compass, University of Economics Varna, issue 4, pages 377-398.

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