Evaluating the Influence of Investment Decision on Financial Performance Perspectives from the Banking Sector of Bangladesh

Authors

  • Taposh Kumar Neogy Trust University Bangladesh Author

Keywords:

Investment decision, Financial performance, ROE, Banking sector

Abstract

Research purpose: The fundamental aim of this study is to determine whether the various components of investment decisions have any significant impact on financial performance.

Design/methodology/approach: This study used secondary data and investigated all the listedbanks (30) on the Dhaka Stock Exchange (DSE) using the purposive sampling method.

The study spans ten years, from 2014 to 2023. This study employed a multiple linear regression model to empirically investigate the relationship between financial performance and investment decision attributes.

Findings: The results of the study exhibited that while the price earnings ratio have no significant effect the financial performance assessed by ROE, EPS, investment in fixed assets, investment size, and asset growth ratio have a significant influence on ROE. Furthermore, company age and cash
flows have no influence on financial performance, while firm size as measured by total assets of the firm have a significant influence on return on equity. Originality/value: The study offers originality and value by evaluating the impact of investment decisions on financial performance specifically in the banking sector of Bangladesh providing context-specific insights.

Practical implications: The findings from the research have significant implications for all parties
(e.g. investors, policy makers, financial analysts, bankers etc.) involved in banking industries for assessing the quality of investment decisions and their financial outcomes.

Research limitations: The study is entirely based on quantitative financial metrics. Qualitative aspects like corporate governance practices, market reputation, management quality of the firm, etc., are not considered in this study, which may also influence financial performance.

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Author Biography

  • Taposh Kumar Neogy, Trust University Bangladesh

    Associate Professor, Department of Business Administration, Trust University, Barishal,
    Bangladesh; Email: neogyais@gmail.com

References

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JKKNIU Business Review

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Published

2026-08-31

Issue

Vol. 1 No. 1 (2025): JKKNIU Business Review

Section

Articles

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Copyright (c) 2025 Taposh Kumar Neogy (Author)

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