whatsapp (+234)07060722008

Tuesday, 6 August 2019



This study set out to study the Impact of Financial Statement on Investment Decision. Financial statement provide the base statement its investment decision it is therefore critical that it should provide a reliable permanent history of the financial activities of organization record in archeological diary of measured event presented in orderly and systematically manner. It readily communicate primarily financial information in nature investors and other practice who make effective use of the information for an investment decision posited by (Onukwu 2018) in regard to financial liquidity, profitability and ability of an entity, is an indication that these information posited to be presented in publications are the balance sheet, profit and loss account and cash flow statements in which case presented in an accounting manner and ethics. Financial statement in accounting formation is an information needed by varieties of uses classified into internal and external users as posited by American Institute of Chartered Public Accounting (AICPA) is an evident which reveal the relative importance of such information to government present and potential direct financial interest as posited to ‘Peter” indicated the statement report shall use all disclosure, materiality, consistency, conservation, and formation according to Paul (2019). Guiding the financial statement analysis instituting comparativeness is the legal frame work defining its requirement disclosure to the consumption of its users.

Corporate organizations owe a duty to fully disclose matters concerning their operations so as to aid investors in making investment decisions. Both large and small organizations in addition to satisfying the legislating requirement tend. to retain existing investors and to attract potential ones through the publication of their financial statements where the capital stock of a corporation is widely held and its affairs are of interest to general public. The discussions and illustrations of the study will be centered on the financial statement presented to shareholders and also available for potential investors, bond holders and trade creditors as a tool of information for investment decision. Financial statement based on result on past activities are analyzed and interpreted as a basis for predicting future rate of returns and assessment of risk. Financial statement provides important information for a wide variety of decision, investors draw information from the statement of the firm in whose security they contemplate investing. Decision makers who contemplate acquiring total or partial ownership of an enterprise expect to secure returns on their investment such as dividends and increase in the value of their investment [capital gain]. Both dividends and increase in the value of shares of company depends on the future profitability of the enterprise. So investors are interested in future profitability. Past income (dividend) data are used to forecast returns for future investment and increase in share prices.
Managers are responsible for the overall performance of the firm they make or take decision in relations to available information; therefore they need relevant information readily made available to make an effective decision for the purpose of this research.

The problem confronting most business organization and investors are in the area of the area of evaluation of financial ratio is often negelected until a problem occurs. The basic analytical tools for the comparative income statement, profit and loss account and balance sheet. It is observed that both investors and manager are either not aware of the relevance or otherwise issue it source? In addition to lack of adequate valuation statement “Fact information” from business to investors there is the lack of analytical intellect on the part of the investors to access the reliability of financial statement. Also the intention of the study the financial statement and trend to future timely present figures and the figure only have meaning in relation to when compared with other fact. However, these problems observed in the preceding paragraph tend to scare away the both existing and potential investor who rather prefer to hold liquidity than investing in business organization that are surrounded by bond of uncertainty until a specific techniques are developed to mean sure liquidly, profitability, solvency etc. The interest of this study will be clustered around the financial statements presented to the shareholders, investors, bond holder, and trade creditor, as important information for investment decision. Finally it is beyond the scope of this study to adequately look into the entire above mentioned problem and to suggest possible solution will reveal key factors responsible for under capacity utilization of financial statement in corporate investment and the relevance of the financial statement in inducing on effective decision making in business of all kinds.

Chapters: 1 - 5
Delivery: Email
Number of Pages: 70

Price: 3000 NGN
In Stock


  1. I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article... nha cai

  2. Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work. deutscher Broker Vergleich


Add Comment