ROLE OF FINANCIAL STATEMENT IN INVESTING DECISION MAKING

ABSTRACT

Corporate organizations owe a duty to fully disclose matters concerning their operations so as to aid investors in making investment decisions because Investment decision makers rely on information obtained from nancial statements to predict future rates of return.Financial statement Without the nancial statement, there will be a problem of how to determine the prot of a company,and evaluation of performance of a company. The general obective is to ascertain the role of nancial statement in investment decision making. The study will be based on surveyand !questionnaire will be used to gather information. There is a total population of “# personnel but the sample size is $# using Taro %amane&s formula.Financial statement The methods used in analyzing this study are simple percentage and chi’s!uare. Financial statement We discovered from the test of hypotheses that nancial statement is relied upon in investment decision making and nancial statements are useful for forecasting company&s performance. Conclusion was drawn based on the ndings that nancial statement playsa vital role in investment decision making and recommends that no investment decision should be taken without the consideration of a company&s nancial statements.Financial statement help these stockholders in decision making. The study will help in widening knowledge nancial statement in investment decision making, it will also make the organization to appreciate the importance of sound nancial statement in the provision of information necessary for decision making. It will review the improvement in the organization handling thenancial statement and show e!ually the ways through which improvement could be accomplished nally this research wille!ually serve as a reference to students in this noble institution and other school who may be interested to embark on a further research study of this nature and above all, report of this study shall denitely add to e8isting knowledge in research methodology.

1.4 RESEARCH HYPOTHESE

ypothesis according to the nglish dictionary is an unproved theory, proposition sent forth as an e8planation of something,often as the basis for further investigation. ypothesis is the guides for the investigators in the entire process of research endeavor and they keep the researcher on the main line of the study, in this research, the following hypothesis are formulated for the study B

Ho

nancial statements are not relied upon in investment decision making in a company.

H1

nancial statement are relied upon in investment decisionmaking in a company.

H2

nancial statements are not useful for forecasting acompany&s performance.

H3

nancial statements are useful for forecasting acompany&s performance.

H4

nancial statement does not determine the protability of a company.

H!

nancial statement determines the protability of acompany. oB nancial statement does not proect newinvestors.

H”

new investors are proected by nancial statement.

1.! RESEARCH #QUESTIONS

*according to Dzoagulu ;+664B6$<, research !questions guide the researcher in constructing the !questionnaires. Therefore the researcher raised the following research !questions to guide herin constructing her !questionnaire which are instruments in the study. The !questions are as followsBi.To what e8tent is nancial statements used in the investment decision making in a companyEii.*re nancial statements useful for forecasting company&s performance Eiii.)o nancial statements determine the protability of an organization Eiv.)o nancial statement proects new investors

1.” SCOPE OF THE STUDY

This study will be limited to a geographical entity known as>igeria and specically :irst 7ank =lc. *rea / branch, :CT‘*bua of >igeria.

1.$ LIMITATION OF THE STUDY

There are some limitations encountered by the researcher in the process of this research which limited the scope to only:irst 7ank =lc. *rea / branch, some of the limitations are as followsBi.Dncooperative attitudes of the respondents B the researcher could not get some necessary information from the respondents because of negative attitude in their response to the oral interview with the bank o@cials and the !questionnaires .ii.Time constraints B despite the time provided, it was not

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