ROLE OF FINANCIAL STATEMENT IN INVESTING DECISION MAKING Accounting Pr…
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 prot of a company,and evaluation of performance of a company. The generalobective 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 “# personnel but the sample size is $# using Taro %amane&s formula.Financial statement The methods used in analyzing thisstudy are simple percentage and chi’s!uare. Financial statement We discoveredfrom the test of hypotheses that nancial statement is reliedupon in investment decision making and nancial statementsare useful for forecasting company&s performance. Conclusionwas drawn based on the ndings that nancial statement playsa vital role in investment decision making and recommendsthat no investment decision should be taken without theconsideration of a company&s nancial statements.Financial statement
1.4 RESEARCH HYPOTHESE
ypothesis according to the nglish dictionary is an unprovedtheory, proposition sent forth as an e8planation of something,often as the basis for further investigation. ypothesis is theguides for the investigators in the entire process of researchendeavor and they keep the researcher on the main line of thestudy, in this research, the following hypothesis are formulatedfor the studyB
nancial statements are not relied upon in investmentdecision making in a company.
nancial statement are relied upon in investment decisionmaking in a company.
nancial statements are not useful for forecasting acompany&s performance.
nancial statements are useful for forecasting acompany&s performance.
nancial statement does not determine the protability of a company.
nancial statement determines the protability of acompany. oB nancial statement does not proect newinvestors.
new investors are proected by nancial statement.
1.! RESEARCH #UESTIONS
*ccording to Dzoagulu ;+664B6$
<, 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 protability of anorganizationEiv.)o nancial statement proects new investors
1.” SCOPE OF THE STUDY
This study will be limited to a geographical entity known as>igeria and specically :irst 7ank =lc. *rea / branch, :CT‘*bua of >igeria.
1.$ LIMITATION OF THE STUDY