The impact of accounting information on bank portfolio management (A case study of First Bank of Nigeria Plc, Enugu)

86 PAGES (10851 WORDS) Accounting Project
ABSTRACT

Every commercial bank targets the attainment of its desired objectives. They therefore aim towards efficiency and proper effectiveness in conducting its affairs. However, the level of this efficiency and effectiveness of any bank or the extent to which it is able to achieve its desired goals depends to a large extent on the quality of the available accounting information and on how the bank utilizes the available information. Commercial banks might not really understand the impact of adequate accounting information in the management of their portfolios until probably they undermine the use of it in their bank. Inadequate or lack of accounting information exposes or leaves portfolio management to certain problems such as:  Malfunctioning and wrong decision making by managers in the management of risks arising from the portfolios. High occurrence of factors that may result to high incidence of losses instead of expected profits where proper accounting information on portfolio management is not on hand. The enhancement in portfolio management of any commercial bank can be made by the standard or the effectiveness of the accounting information as well as the policies implemented by the management of the bank

TABLE OF CONTENTS

Title pagei
Certificationiii
Dedicationiv
Acknowledgementv
Table of contentvi
Abstractxi

CHAPTER ONE
INTRODUCTION
1.0     Introduction
11.     Background to the study
1.2Statement of problem
1.3Objectives of the study
1.4Research Question
1 5     Statement of hypothesis
1.6 Significance of the study
1.7Sope of the study
1.8Limitation of the study
CHAPTER TWO
LITERATURE REVIEW 
2.1 PORTFOLIO MANAGEMENT
2.2.     ROLE AND PURPOSES OF PORTFOLIO MANAGEMENT
2.2.1 MAXIMIZE THE VALUE OF THE PORTFOLIO
2.2.2       SEEKING THE RIGHT BALANCE OF PORTFOLIOS
2.2.3        ENSURING THAT THE PORTFOLIO IS STRATEGICALLY ALIGNED 
2.2.4        PICKING THE RIGHT NUMBER OF PORTFOLIOS 
2.3      PREREQUISITES FOR EFFECTIVE PORTFOLIO MANANGEMENT
2.3.1      ESTABLISHING GENERAL CRITERIA AND OBJECTIVES 
2.3.2     FORECAST THE EXTERNAL ENVIRONMENT 
2.3.3   INVENTORYING THE PORTFOLIO NEEDS
 2.3.4    FORMULATING PRINCIPLES AND STRATEGY
2.3.5     ESTABLISHING THE MACHINERY FOR ADMINISTRATION, APPRAISAL AND REVIEW 
2.4   MODERN PORTFOLIO THEORY 
2.5   PORTFOLIO MANAGEMENT TECHNIQUES
 2.5.1    HEURISTIC MODEL
2.5.2 SCORING TECHNIQUE
2.5.3 MAPPING OR VISUAL TECHNIQUE
2.6 PRINCIPLES AND PRACTICES OF PORTFOLIO MANAGEMENT
2.6.1   EMPHASIZING A DISCIPLINED PROCESS TO ELIMINATE RESPONSE TO SHORT-TERM MARKET VOLATILITY
2.6.2   DELIVERING GREAT CAPABILITY TO  ALL INVESTMENT MANAGEMENT SOLUTIONS. 
2.6.3 ALIGNING THE INVESTMENT STRATEGY WITH THE OBJECTIVES AND RISK TOLERANCE. 
2.6.4 EMPHASIZING THE IMPORTANCE OF ASSET ALLOCATION 
2.7 DIVERSIFICATION OF PORTFOLIOS
2.8 METHODS OF PORTFOLIO ANALYSIS 
2.9 FINANCIAL RATIOS ANALYSIS
2.10 ROLE OF ACCOUNTING INFORMATION IN BANK'S PORTFOLIO DECISIONS 
2.11 LIMITATIONS OF ACCOUNTING INFORMATION
REFERENCES 

CHAPTER THREE
RESEARCH METHODOLOGY
3.1    RESEARCH DESIGN
3.2    SOURCES OF DATA
3.3.    AREA OF STUDY
3.4     Population of the study      
3.5      Sample size and sample techniques collection
3.6     Validation and Reliability of the research instrument
3.7       TECHNIQUE FOR DATA ANALYSIS
3.9      Decision Criterion for validation of hypothesis 

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS 
4.1   Introduction
4.2    DATA PRESENTATION
4.3   Testing of Hypothesis

CHAPTER FIVE
5.0 SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATION, 
5.1Summary of findings
5.2    Conclusion
5.3    Recommendation
BIBLIOGRAPHY 
APPENDIX 1 QUESTIONNAIRES
APPENDIX 11