1Department Finance Payable Unit, Institute of Human Virology, Nigeria No. 165, Along Ibb Way, Kofar Kaura, Katsina, Nigeria
2Department of Mathematics, ISA Kaita College of Education, P.M.B 5007 Dutsin-MA, Katsina, Nigeria
3Department of Accounting, Umaru Musa Yar'Adua University, Katsina, Nigeri
Online published on 29 March, 2017.
This project was designed to investigate the role of financial reporting in investment decision making. This was triggered off by an unprecedented line up of corporate failures throughout the globe. This research is a critical investigation on the degree of reliance of the financial statements by Banks in making decisions. The study employed survey research design by which data were generated by means the researcher administered questionnaire on the staff of Access Bank branches. The descriptive statistics and percentage analysis were used for the data analysis and the hypotheses were tested using t-test statistic. The statistical package for social sciences (SPSS) software version 17.0 was employed in the analysis of data and test of hypotheses: There is significance extent to which Financial Statements are used to be relied upon in investment decision making tcal 74.500 > tcritical 6.314 at 5% level of significance. It also showed that financial statements are useful for forecasting bank's performance (tcal (17.306) > tcritical (2.353). at 5% level of significance). The results of the analysis also indicated that financial statement determines the profitability of a bank (tcal (16.590) > tcritical (2.353). 5% level of significance) and another hypothesis indicated that new investors are projected by financial statement (tcal 4.592 > tcritical 2.5323; at 5% level of significance). The research was concluded 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.
