Effect Of Financial Statement Contents On Investment Decision Making Of Oil And Gas Companies In Nigeria:- Ikechukwu Ruth T

ABSTRACT

 The study sets to examine the effect offinancial statement contents on investment decision making ofoil and gas companies in Nigeria. The study employed Ex postfacto research design as the research design and adopted the use ofa multiple linear regressionfor analysis ofdata and test ofhypotheses. The results revealed that; liquidity ratio has a positive significant effect on return on assets oflisted oil and gasfirms in Nigeria. The second hypothesis tested revealed that market value ofshares has a negative insignificant effect on return on assets oflisted oil and gasfirms in Nigeria while the third hypothesis tested revealed that turnover ratio has a negative significant effect on return on assets oflisted oil and gasfirms in Nigeria. The final hypothesis tested revealed that leverage ratio has a positive insignificant effect on return on assets oflisted oil and gasfirms in Nigeria. Thus, the study recommended that; Oil and gasfirms should give adequate care and due diligence in preparing the financial statements to avoidfaulty content which could lead to loss offunds andpossible litigations by stakeholders. Also, Oil & gasfirms and professional bodies should instigate policies that will increase the knowledge of stakeholders on publishedfinancial statement especially the market value ofshares such that it will attract investors that will enhance more funds for investment purposes and subsequent returns.