Year : 2019, Volume : 7, Issue : 1
First page : ( 87) Last page : ( 99)
Online ISSN : 2321-1784. Published online : 2019 January 1.

Role of Financial Statement in Investment Decision Making.

Kawugana Alhaji^1,*, Faruna Faruna Simon^2,**

¹Federal Polytechnic, P.M.B 0231 Bauchi, Bauchi State Nigeria

²First Bank of Nigeria PLC

* alhajikawugana@gmail.com

** Sfaruna@yahoo.com

Abstract

The aim of the study will be centered on the financial statement presented to shareholders, potential investors, bond holders and trade creditors as a tool of information for investment decision. 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 financial statements to predict future rates of return. Without the financial statement, there will be a problem of how to determine the profit of a company, and evaluation of company performance. The general objective is to ascertain the role of financial statement in investment decision making. The study will be based on survey and questionnaire will be used to gather information. The methods used in analyzing this study are simple percentage and chi-square. Concluded was drawn based on the findings that financial statement plays a vital role in investment decision making and recommends that no investment decision should be taken without the consideration of a company's financial statements and every company should ensure that all material fact is reflected in their financial statement

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Keywords

Financial, Statements, Analysis, information, Investment decision, corporate organizations.

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