Accounting Project Topics

Role of Financial Statement in Investing Decision Making

Role of Financial Statement in Investing Decision Making

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Abstract of Role of Financial Statement in Investing Decision Making

Corporate organizations owe a duty to fully disclose mattersconcerning their operations so as to aid investors in makinginvestment decisions because Investment decision makers relyon information obtained from ๎€€nancial statements to predictfuture rates of return.Financial statement Without the ๎€€nancial statement, therewill be a problem of how to determine the pro๎€€t of a company,and evaluation of performance of a company. The generalob๎€ective is to ascertain the role of ๎€€nancial statement ininvestment decision making. The study will be based on surveyand !uestionnaire will be used to gather information. There is atotal population of โ€œ# personnel but the sample size is $# usingย Taro %amane&s formula.Financial statement The methods used in analyzing thisstudy are simple percentage and chiโ€™s!uare. Financial statement We discoveredfrom the test of hypotheses that ๎€€nancial statement is reliedupon in investment decision making and ๎€€nancial statementsare useful for forecasting company&s performance. Conclusionwas drawn based on the ๎€€ndings that ๎€€nancial statement playsa vital role in investment decision making and recommendsthat no investment decision should be taken without theconsideration of a company&s ๎€€nancial statements.Financial statement
help these stockholders in decision making. The study will helpin widening knowledge ๎€€nancial statement in investmentdecision making, it will also make the organization toappreciate the importance of sound ๎€€nancial statement in theprovision of information necessary for decision making. It willreview the improvement in the organization handling the๎€€nancial statement and show e!ually the ways through whichimprovement could be accomplished ๎€€nally this research wille!ually serve as a reference to students in this noble institutionand other school who may be interested to embark on a furtherresearch study of this nature and above all, report of this studyshall de๎€€nitely add to e8isting knowledge in researchmethodology.

RESEARCH HYPOTHESIS

Hypothesis according to the ๎€„nglish dictionary is an unprovedtheory, proposition sent forth as an e8planation of something,often as the basis for further investigation. ๎€‚ypothesis is theguides for the investigators in the entire process of researchendeavor and they keep the researcher on the main line of thestudy, in this research, the following hypothesis are formulatedfor the studyB
Ho๎€€
ย Financial statements are not relied upon in investmentdecision making in a company.
H1๎€€
Financial statement are relied upon in investment decisionmaking in a company.
H2๎€€
ย Financial statements are not useful for forecasting acompany&s performance.
H3๎€€
financial statements are useful for forecasting acompany&s performance.
H4๎€€
ย financial statement does not determine the pro๎€€tability of a company.
H!๎€€
financial statement determines the pro๎€€tability of acompany. ๎€‚oB ๎€€nancial statement does not pro๎€ect new investors.
Hโ€๎€€
new investors are pro๎€ected by ๎€€nancial statement.

RESEARCH QUESTIONS

According to Dzoagulu ;+664B6$<, research !uestions guide theresearcher in constructing the !uestionnaires. Therefore theresearcher raised the following research !uestions to guide herin constructing her !uestionnaire which are instruments in thestudy. The !uestions are as followsBi.To what e8tent is ๎€€nancial statements used in theinvestment decision making in a companyEii.*re ๎€€nancial statements useful for forecasting company&sperformanceEiii.)o ๎€€nancial statements determine the pro๎€€tability of anorganizationEiv.)o ๎€€nancial statement pro๎€ects new investors

SCOPE OF THE STUDYย 

ย This study will be limited to a geographical entity known as>igeria and speci๎€€cally :irst 7ank =lc. *rea / branch, :CTโ€˜*bu๎€a of >igeria.

LIMITATION OF THE STUDYย 

ย ย There are some limitations encountered by the researcher inthe process of this research which limited the scope to only:irst 7ank =lc. *rea / branch, some of the limitations are asfollowsBi.Dncooperative attitudes of the respondentsB theresearcher could not get some necessary information fromthe respondents because of negative attitude in theirresponse to the oral interview with the bankย o@cialsย andthe !uestionnaires.ii.Time constraintsB despite the time provided, it was not

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