Empirical Analysis of the Effect of Investment Analysis Techniques on Portfolio Management in Nigeria

Abstract

This study investigates the effect of investment analysis techniques on portfolio management in Nigeria, with special emphasis on Fundamental Analysis (FA), Technical Analysis (TA), and Broker Summary Analysis (BS). The research employed a quantitative approach, using a structured questionnaire administered to 100 portfolio managers and investment analysts in Nigeria. The data collected were analyzed using multiple regression analysis. The findings indicate that both Fundamental Analysis and Technical Analysis significantly contribute to portfolio performance, while Broker Summary Analysis does not exhibit a statistically significant impact. Specifically, the regression results revealed that Fundamental Analysis and Technical Analysis positively influence portfolio performance, with p-values of 0.047 and 0.037, respectively. In contrast, Broker Summary Analysis had a p-value of 0.096, indicating no significant effect. The model’s R-squared value of 0.004 suggests that the three predictors explain only a small portion of the variance in portfolio performance, highlighting the potential influence of other factors. These results underscore the importance of Fundamental Analysis and Technical Analysis in portfolio management within the Nigerian context. The study concludes that investment firms should enhance training programs, integrate advanced technological tools, promote best practices, and encourage interdisciplinary collaboration to optimize portfolio performance. Policymakers are also encouraged to support financial literacy initiatives to strengthen investment analysis capabilities.