Description
ABSTRACT
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. Financial statement 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 generalobective 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 personnel but the sample size is using Taro Yamani formula. Financial statement The methods used in analyzing this study are simple percentage and chi-squares. Financial statement 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. Conclusion 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. Financial statement
help these stockholders in decision making. The study will help in widening knowledge financial statement in investment decision making, it will also make the organization to appreciate the importance of sound financial statement in the provision of information necessary for decision making. It will review the improvement in the organization handling thenancial statement and show eventually the ways through which improvement could be accomplished finally this research will eventually serve as a reference to students in this noble institution and other school who may be interested to embark on a further research study of this nature and above all, report of this study shall definitely add to e8isting knowledge in research methodology.
1.4 RESEARCH HYPOTHESE
Hypothesis according to the English dictionary is an unproved theory, proposition sent forth as an e8planation of something, often as the basis for further investigation. hypothesis is the guides for the investigators in the entire process of research endeavor and they keep the researcher on the main line of the study, in this research, the following hypothesis are formulated for the study B
Ho
Financial statements are not relied upon in investment decision making in a company.
H1
Financial statement are relied upon in investment decision making in a company.
H2
Financial statements are not useful for forecasting a companys performance.
H3
Financial statements are useful for forecasting a companys performance.
H4
Financial statement does not determine the profitability of a company.
H5
Financial statement determines the profitability of acompany. oB nancial statement does not proect new investors.
H”
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
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 bank o@cials andthe !uestionnaires.ii.Time constraintsB despite the time provided, it was not
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