ABSTRACT

The study sets to examine the effect of financial statement contents on investment decision making of oil and gas companies in Nigeria. The study employed Ex post facto research design as the research design and adopted the use of a multiple linear regression for analysis of data and test of hypotheses. The results revealed that; liquidity ratio has a positive significant effect on return on assets of listed oil and gas firms in Nigeria. The second hypothesis tested revealed that market value of shares has a negative insignificant effect on return on assets of listed oil and gas firms in Nigeria while the third hypothesis tested revealed that turnover ratio has a negative significant effect on return on assets of listed oil and gas firms in Nigeria. The final hypothesis tested revealed that leverage ratio has a positive insignificant effect on return on assets of listed oil and gas firms in Nigeria. Thus, the study recommended that; Oil and gas firms should give adequate care and due diligence in preparing the financial statements to avoid faulty content which could lead to loss of funds and possible litigations by stakeholders. Also, Oil & gas firms and professional bodies should instigate policies that will increase the knowledge of stakeholders on published financial statement especially the market value of shares such that it will attract investors that will enhance more funds for investment purposes and subsequent returns.