The Impact Of Capital Budgeting Decision On Commercial Banks’ Performance

The objective of this study was to examine the impact of capital budgeting decision on commercial banks’ performance using GCB Bank as case study. Specifically, the study sought to;

1. Determine the relationship between Net Present Value (NPV) and financial performance of GCB Bank.
2. Determine the effect of Internal Rate of Return (IRR) on financial performance of GCB Bank.
3. Establish the effect of Accounting Rate of Return (ARR) on financial performance of GCB Bank.
4. Analyse the effect of Payback Period (PBP) on financial performance of GCB Bank.
5. Analyse the effect of leverage on financial performance of GCB Bank.
6. Establish the influence of company size on financial performance of GCB Bank.

The population of the study comprised GCB bank. The type of data collected was secondary data obtained from the Central Bank of Ghana and the financial reports of GCB Bank Limited for the period 2015 to 2019. SPSS version 23 was employed to analyze data that was collected where by descriptive statistics were used to understand better the findings, the information presented into percentages, pie charts and tables with an analysis while inferential statistics was applied by use of multiple regression model.