The Complete Project Research Material is averagely 60 pages long and is in Ms Word Format, it has 1-5 Chapters. Major Attributes are Abstract, All Chapters, Figures, Appendix, References Level : BTech/BSc/BA/HND/ND.
Get the complete project »
1.1 BACKGROUND OF THE STUDY
Corporate organizations owe a duty to fully disclose matters concerning their operations so as to aid investors in making investment decisions. Both large and small organizations in addition to satisfying the legislating requirement tend. to retain existing investors and to attract potential ones through the publication of their financial statements where the capital stock of a corporation is widely held and its affairs are of interest to general public. The discussions and illustrations of the study will be centered on the financial statement presented to shareholders and also available for potential investors, bond holders and trade creditors as a tool of information for investment decision. Financial statement based on result on past activities are analyzed and interpreted as a basis for predicting future rate of returns and assessment of risk.
Financial statement provides important information for a wide variety of decision, investors draw information from the statement of the firm in whose security they contemplate investing. Decision makers who contemplate acquiring total or partial ownership of an enterprise expect to secure returns on their investment such as dividends and increase in the value of their investment [capital gain]. Both dividends and increase in the value of shares of company depends on the future profitability of the enterprise. So investors are interested in future profitability. Past income (dividend) data are used to forecast returns for future investment and increase in share prices.
Managers are responsible for the overall performance of the firm they make or take decision in relations to available information; therefore they need relevant information readily made available to make an effective decision for the purpose of this research.
1.2 STATEMENT OF THE RESEARCH PROBLEM
The problem confronting most business organization and investors are in the area of the area of evaluation of financial ratio is often negelected until a problem occurs. The basic analytical tools for the comparative income statement, profit and loss account and balance sheet. It is observed that both investors and manager are either not aware of the relevance or otherwise issue it source? In addition to lack of adequate valuation statement “Fact information” from business to investors there is the lack of analytical intellect on the part of the investors to access the reliability of financial statement. Also the intention of the study the financial statement and trend to future timely present figures and the figure only have meaning in relation to when compared with other fact.
However, these problems observed in the preceding paragraph tend to scare away the both existing and potential investor who rather prefer to hold liquidity than investing in business organization that are surrounded by bond of uncertainty until a specific techniques are developed to mean sure liquidly, profitability, solvency etc.
The interest of this study will be clustered around the financial statements presented to the shareholders, investors, bond holder, and trade creditor, as important information for investment decision. Finally it is beyond the scope of this study to adequately look into the entire above mentioned problem and to suggest possible solution will reveal key factors responsible for under capacity utilization of financial statement in corporate investment and
the relevance of the financial statement in inducing on effective decision making in business of all kinds.
1.3 RESEARCH QUESTIONS
1. Is there relationship between financial statement and investor decision?
2. To what extent financial statement aid in investment decision?
3. Does financial statement aid in assessing the financial position of an organization?
4. Does analytical tools are set to aid prospective investors in accessing the financial position of the cooperate organization?
1.4 OBJECTIVE OF THE STUDY
The main objective of this study is to examine the relevance of financial statement to investment decision. The other objectives include:
1. To identify the relationship between financial statement and investment decision
2. To assess how financial statement aid in investment decision
3. To ascertain how financial statement aid in asserting the financial position of an organization
4. To examine how a set of analytical tools will aid prospective investors in assessing the financial position of the cooperate organizations.
1.5 RESEARCH HYPOTHESIS
The study will be based on the following hypotheses
HI: there is a relationship between financial statement and investment decision
Ho: There is no relationship between financial statement and investment decision.
H2: That financial statement and investment decision
HO: financial statement dose not aid in investment decision
H3: financial statement determine how a set of analytical tools will aid prospective investors in analytical tools will aid prospective investor in assessing the financial position of the cooperate organization.
1.6 SIGNIFICANCE OF THE STUDY
Share a Comment
You can find more project topics easily, just search
SIMILAR ACCOUNTING FINAL YEAR PROJECT RESEARCH TOPICS
» ABSTRACT The study investigated the Effects of Working Capital Management on the profitability of manufacturing Company, A Case study of Cadbury Niger...Continue Reading »
67 pages | 39 hits | Source: ACCOUNTING
2. APRAISAL OF BUDGETING AS A TOOL FOR EFFECTIVE CONTROL IN THE PUBLIC SECTOR (A CASE STUDY OF POWER HOLDING COMPANY OF NIGERIA)» CHAPTER ONE 1.1 INTRODUCTION BACKGROUND OF THE STUDY Traditional budgeting has been criticized for a long time now for its inadequacy as a m...Continue Reading »
67 pages | 69 hits | Source: ACCOUNTING
» CHAPTER ONE 1.0 INTRODUCTION Inventory in the form of raw materials, work in progress and finished goods constitutes significant proportion of assets ...Continue Reading »
52 pages | 63 hits | Source: ACCOUNTING
4. THE EFFECT OF ACCOUNTABILITY AND TRANSPARENCY ON THE PERFORMANCE OF THE PUBLIC SECTOR ORGANIZATION» ABSTRACT In this research work titled effect of accountability and transparency on the performance of the public sector organizations with particular ...Continue Reading »
52 pages | 125 hits | Source: ACCOUNTING
5. THE EFFECT OF TREASURY SINGLE ACCOUNT ON ACCOUNTABILITY OF GOVERNMENT REVENUE SPECIFICALLY THE PARASTATALS IN KADUNA STATE» CHAPTER ONE INTRODUCTION 1.1 Background to the study Treasury single account (TSA) is an essential tool for consolidating and managing government cash...Continue Reading »
42 pages | 97 hits | Source: ACCOUNTING
6. THE INFLUENCE OF AUDITOR’S TYPE ON THE QUALITY OF FINANCIAL REPORTS OF MANUFACTURING FIRMS IN NIGERIA» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Over the years, the influence of auditors on financial reports of firms or companies all over the...Continue Reading »
98 pages | 64 hits | Source: ACCOUNTING
7. AUDITOR’S OPINION AND FINANCIAL REPORTING QUALITY A STUDY OF FIRST BANK MAIN BRANCH, KADUNA STATE» TABLE OF CONTENTS Tittle Page Title page i Declaration ii Certification iii Dedication iv Acknowledgement. v Table of Contents vi Abstract viii CHAPTE...Continue Reading »
52 pages | 136 hits | Source: ACCOUNTING
8. ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ON THE QUALITY OF FINANCIAL STATEMENTS: A STUDY OF FIVE LISTED BANKS» CHAPTER ONE INTRODUCTION 1.0 BACKGROUND OF THE STUDY The global practice of accounting is guided by sets of rules and regulations which are compilated...Continue Reading »
52 pages | 52 hits | Source: ACCOUNTING
» ABSTRACT This paper examines the effect of exchange rate fluctuations on the Nigerian manufacturing sector during a twenty five (25) years period (198...Continue Reading »
50 pages | 135 hits | Source: ACCOUNTING
» CHAPTER ONE INTRODUCTION 1.1 Background of the study In recent years, the independence of an auditor has come under criticism. This is because the ess...Continue Reading »
60 pages | 908 hits | Source: ACCOUNTING