Role Of Financial Statement On Investment Decision Making (A Case Study Of First Bank Nigeria Plc)

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. 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 on investment decision making. The study was based on survey and questionnaire was used to gather information. There was a total population of 70 personnel but the sample size was 60 using Taro Yamane's formula. The methods used in analysing this study is ordinary least square method. We discovered from the test of hypotheses that financial statement was relied upon in investment decision making and financial .statements are useful for forecasting company's performance. Conclusions were drawn based on the findings that financial statement plays a vital role on investment decision making and recommends that no investment decision should be taken without the consideration of a companys financial statements.