The Impact of Bank Specific Factors on Investment Decisions
Abstract
The main purpose of this study is to analyze the impact of bank specific variables on investment decision
on commercial banks in Pakistan. The data collected from 15 commercial banks was selected from the Pakistan
Stock Exchange. The data of the variables are collected from the secondary sources like from the annual reports and
State Bank of Pakistan website. It covers a period from 2008 to 2018. Result shows that a negative relationship
exists between investment and firm Size, a positive association exists among the investment and return on assets. A
positive weak relation exists between the investment and exchange rate. A negative weak association exists between
investment and Inflation. The findings from this research would provide an understanding of the various decisions to
be made by investors based on the prevailing factors and the eventual outcomes for each decision and would identify
the most influencing factors on the company’s investors’ behavior on how their future policies and strategies will be
affected since investment decisions by the investors will determine the company’s strategy to be applied.
Copyright Notice Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication. Copyrights for articles published in IJSSA journal are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author’s responsibility to bring an infringement action if so desired by the author.