EVALUATING THE IMPACT OF FINANCIAL STATEMENT TRANSPARENCY ON INVESTMENT DECISION MAKING AND FIRM PERFORMANCE IN THE POST-PANDEMIC ECONOMY

This study investigates the impact of financial statement transparency on investment decision-making and firm performance in the post-pandemic economy, using First Bank of Nigeria Plc. as a case study. The research is motivated by the heightened need for credible financial disclosures during periods of uncertainty, such as the COVID-19 pandemic and its aftermath, which amplified liquidity constraints, investor skepticism, and market volatility. Guided by agency theory, information asymmetry theory, and stakeholder theory, the study adopts a qualitative research design employing documentary analysis of First Bank’s annual reports, financial statements, and related disclosures from 2020 to 2024. The findings reveal a significant evolution in transparency practices, with disclosures shifting from pandemic-focused reporting (2020–2021) to forward-looking narratives emphasizing digital transformation, sustainability, and governance (2022–2024). This progression was accompanied by improved timeliness, enhanced ESG reporting, and detailed risk disclosures. The analysis shows a strong positive correlation between enhanced transparency and firm performance, as reflected in substantial growth in profit after tax (CAGR of 45.8%), rising return on equity (7.8% to 19.5%), and a declining non-performing loan ratio (7.2% to 4.1%). Market indicators, including a 200% increase in market capitalization, rising share prices, and expanding analyst coverage, further suggest that investors perceived the bank’s disclosures as credible and reliable. The study concludes that financial transparency is not merely a compliance requirement but a strategic tool that reduces information asymmetry, signals resilience and growth potential, and fosters stakeholder trust. It recommends that firms integrate both financial and non-financial disclosures into their reporting frameworks, regulators strengthen ESG reporting standards, and investors incorporate narrative disclosures into decision-making. While the research is limited to a single case study, it provides valuable insights into how transparency can drive investor confidence and sustainable performance in Nigeria’s banking sector and beyond.