0704-883-0675     |      dataprojectng@gmail.com

EFFECT OF PUBLISHED FINANCIAL STATEMENT ON SHAREHOLDER INVESTMENT DECISION

  • Project Research
  • 1-5 Chapters
  • Abstract : Available
  • Table of Content: Available
  • Reference Style: APA
  • Recommended for : Student Researchers
  • NGN 5000

STATEMENT OF THE PROBLEM

Virtually, every economic entity maintains its records on a historical cost basis. The historical cost figures alone are inadequate. This is because net profit is over stated, the balance sheet does not reflect the current worth of the enterprises and inflationary situation, and the charging of the historical cost of operations to profit and loss account may endanger the maintenance of the operating capital of the entity. It is obvious that the current situation of published financial statement has some limitations. This is because the result of operation (net profit) is a function of accounting standards, policies and conventions adopted by a company and used in the preparation of the financial statements. The financial statement should provide accurate financial information; which shareholders can effectively manipulate to get the best out of their investment. It is pertinent to say that analysis and interpretation of any financial statement will descend on the adequacy and accuracy of the said statement and how the financial information is being disclosed so as to enable to shareholder make major investment decision such as “if to hold their shares or sell them and invest in bond other than equity”. If they are to buy more share of the same firm, but the problems statements. 8 i) Some shareholders cannot interpret financial information correctly and cannot be able to make good use of the financial information disclosed to get the best out of their investment. ii) Company’s concepts, conventions and principles are not capable of meeting the user needs. iii) Published financial statements do not induce more people to make investment in some companies. iv) Some shareholders are not oriented before making investment decision. v) Sometimes the dividend are not satisfactory considering the risk involved in investment. vi) Some financial statement sometimes guide the investors. vii) Some financial statement prepared are window dressing. viii) Some company’s find it difficult to make their financial statement available to the shareholder at any point in time.

PURPOSE OF THE STUDY

This research was undertaken to find a better solution to the research problem(s) already existing in this area of study. It is therefore imperative to establish some guiding steps and principles in decision making process which will ensure that a given objective is not defeated and to find out if the financial information that emanate from the published finance statements makes any meaning to investing public. 9 a) To know whether the information in the financial reports of companies and other financial information areas are understood and used for investment decision making. b) To ascertain the extent the company’s concept, convention and principles are capable of meeting users/ investors needs. c) It is deemed to state categorically and in clear terms that the influence of corporate reporting to investment differences in accounting methods and how financial statement deficiency affects the investors (shareholders). d) To ascertain the extent published financial statement induced more people to invest in companies.





Related Project Materials

EFFECTS OF SOIL EROSION IN EMERGING URBAN CENTRE OF AFUZE

ABSTRACT

This study examined the effects of soil erosion in emerging urban centre of Afuze, and its environs. It identif...

Read more
FACTOR'S AFFECTING UTILIZATION OF PRIMARY HEALTH CARE FACILITIES

BACKGROUND OF THE STUDY

The goal of primary health care (PHC) was to provide accessible health for all by the year 2000...

Read more
Public Relations Strategies in Enhancing Rural Electrification Projects: A Study of Birnin Kebbi LGA, Kebbi State

Background of the Study
Rural electrification is a critical component of socio-economic development, providing communities...

Read more
INVESTIGATION OF MARKETING STRATEGIES AND ITS SIGNIFICANCE ON THE PERFORMANCE OF SMALL SCALE AND MEDIUM ENTERPRISE IN LAGOS STATE, NIGERIA.

ABSTRACT

The study investigates of marketing strategies and its significance on the performance of  small scal...

Read more
PUBLIC POLICY AND GRASS ROOT DEVELOPMENT IN NIGERIA (A CRITICAL APPRAISAL OF NATIONAL POVERTY ERADICATION PROGRAMME ON ASARI-TORU L. G. A OF RIVER STATE)

 

ABSTRACT

          In am attempt to develop and improve th...

Read more
An Investigation of Nurses’ Role in Improving Trauma Care for Gunshot and Stab Wound Victims in Yobe State Healthcare Facilities

Background of the Study: Trauma care is a critical area of emergency nursing, particularly for patients with...

Read more
An Appraisal of the Effectiveness of IT Training Programs on Employee Performance: A Study of Corporate Firms in Plateau State

Background of the Study

Information Technology (IT) training programs are designed to improve employees’ technical skills, enhance...

Read more
ASSESSMENT OF THE IMPLEMENTATION OF THE READING COMPONENT OF THE ENGLISH LANGUAGE CURRICULUM IN SENIOR SECONDARY SCHOOLS IN NIGERIA

ABSTRACT

The study assessed the implementation of English reading components in senior secondary schools in Nigeria (a study of Kaduna st...

Read more
PROBLEMS AND PROSPECTS OF JUDICIAL ADMINISTRATION IN NIGERIA

BACKGROUND OF THE STUDY

The Nigerian political history dated back to the pre-colonial era. The various&...

Read more
The impact of nurse-led foot care education on reducing diabetic foot ulcers in Federal Medical Centre, Katsina State

Background of the Study: Diabetic foot ulcers (DFUs) are one of the most common and severe complications of...

Read more
Share this page with your friends




whatsapp