The Relationship Between Firm Investment and Financial Status a Case Study of Diamond Trust Bank

Abstract

The study focused on the effect of firm investment and financial status. The study established how Research and development investment affects financial status, the effect of human capital investment on financial status and the effect of Information Technology Investment and financial status. The study used a case study design and the study focused on DTB Bank. The population of the study was 58 respondents and the sample size was 48. The study used both qualitative and quantitative research approaches for data collection. The findings revealed a positive moderate and a significant relationship between research and development investment and financial status of R 0.612, the findings further revealed a positive moderate relationship between human capital investment and financial status of R 0.441 and the findings furthermore revealed a positive moderate and significant relationship between information Technology Investment and financial status of R 0.534. The study concludes that the bank is innovative in carrying out activities by creating new products and services. The study further concludes that employee competencies have enhanced due to human capital investment and this has made employees become more flexible with finances. The study furthermore concludes that IT investment’s leads to improvement in product quality since use of IT improves inventory turnover. On that note, the study recommends that the management of the organization should embark on adding more product variety because their product line is still low. The study recommends that that bank should be more innovative in carrying out activities and ensure they develop new products and services. This will make a bank more attractive hence getting more customers. The researcher recommends that organization should train employees such that they acquire skills necessary to make a bank more competitiveness. The knowledge shall make employee more competent in carrying out organization activities. The researcher recommends that management should increase financial investment IT in order to improve on the product quality. The improvement in product quality will make the bank more competitive.