Influence of social accounting disclosure on investment decision of potential investors

This paper attempts to evaluate the influence of social accounting disclosure on investment decision of potential investors in Bangalore. A structured questionnaire was administered and data was collected from potential investors by using random sampling method. The collected data was analyzed by correlation and regression statistical tools. The reliability of the data is acceptable as the Cronbach's Alpha is 0.841. This study revealed that there is comparatively less awareness of social accounting disclosures among potential investors. There is a significant positive correlation between awareness level, disclosure aspect and adoption of social accounting disclosure. This paper recommends that social accounting shall be integrated in the annual reports along with the financial statements of the organization and clear regulatory framework shall be issued by the Government so that the companies social contribution is accounted and reported which act as an important aspect for the decision making process among stakeholders at large.