Role Of Financial Statement In Investment Decision Making

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 performance of a company. 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.

There is a total population  of  70  personnel  but  the  sample  size  is  60  using  Taro  Yamane’s formula. The methods used in analysing this study are simple percentage and chi- square. We discovered from the test of hypotheses that financial statement is relied upon in investment decision making and financial statements are useful for forecasting company’s performance. 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