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 in investment decision making. The study will be based
on survey and questionnaire will be used to gather information. There is a total
population of 70 personnel but the sample size is 60 using Taro Yamane’s
formula. The methods used in analysing this study are simple percentage and chisquare. We discovered from the test of hypotheses that financial statement is
relied upon in investment decision making and financial statements are useful for
forecasting company’s performance. Concluded was drawn based on the findings
that financial statement plays a vital role in investment decision making and
recommends that no investment decision should be taken without the
consideration of a company’s financial statements.
TABLE OF CONTENT
Cover page------------------------------------------------------------------------------i
Title page-------------------------------------------------------------------------------ii
Certification page--------------------------------------------------------------------iii
Dedication-----------------------------------------------------------------------------iv
Acknowledgement------------------------------------------------------------------v
Abstract-------------------------------------------------------------------------------vi
Table of content--------------------------------------------------------------------vii
CHAPTER ONE
1.0 Introduction---------------------------------------------------------------------1
1.1 Historical background---------------------------------------------------------2
1.2 Statement of the problem---------------------------------------------------3
1.3 Objective of the study--------------------------------------------------------4
1.4 Research hypotheses---------------------------------------------------------5
1.5 Research questions-----------------------------------------------------------6
1.6 Significance of the study----------------------------------------------------7
1.7 Scope of the study------------------------------------------------------------8
1.8 Limitation of the study-------------------------------------------------------8
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction------------------------------------------------------------------10
2.1 Features of financial statement------------------------------------------12
2.2 Functions of financial statement-----------------------------------------12
2.3 Objectives of financial statement----------------------------------------13
2.4 Analysis of financial statement-------------------------------------------14
2.5 Users of financial statement----------------------------------------------14
2.6 Attributes of an ideal financial statement-----------------------------18
2.7 Types of financial statement----------------------------------------------21
2.8 Definition and nature of investment decision------------------------29
2.9 Importance of investment decision-------------------------------------32
2.10 Types of investment decision-------------------------------------------34
2.11 Investment evaluation criteria------------------------------------------36
2.12 The role of financial statement in investment decision making42
2.13 Types of ratios and their uses-------------------------------------------43
Reference
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction-------------------------------------------------------------------49
3.1 Research design--------------------------------------------------------------49
3.2 Area of the study-------------------------------------------------------------50
3.3 Population of the study----------------------------------------------------50
3.4 Sample size and sample technique--------------------------------------50
3.5 Instruments for data collection------------------------------------------52
3.6 Sources of data collection-------------------------------------------------52
3.7 Methods of data collection-----------------------------------------------53
3.8 Method of data presentation and analysis---------------------------54
3.9 Validity of instrument used----------------------------------------------56
3.10 Reliability of the instrument used------------------------------------56
Reference
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Data presentation-----------------------------------------------------------58
4.2 Data analysis------------------------------------------------------------------58
4.3 Test of hypotheses----------------------------------------------------------67
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings--------------------------------------------------------72
5.2 Conclusion-------------------------------------------------------------------- 73

5.3 Recommendations----------------------------------------------------------74
Bibliography ----------------------------------------------------------------------76
Appendixes ---------------------------------------------------------------------78