Effect Of Financial Reporting On Investment Decision Making In Listed Companies At Nairobi Stocks Exchange

ABSTRACT

The objective of the study aimed to find out the role of financial reporting in investment decision making. A case study of listed companies in the Nairobi stocks exchange. (NSE) the study was guided by the objectives; to evaluate the performance of a company depending on how it makes its investment decisions based on the financial reports, to examine how a set of analytical tools will aid investors in assessing the financial statements of the corporate organization and to find out the role of financial reporting in making investment decisions.

This research adopted a descriptive research design. A descriptive research design is a scientific method which involves observing and describing the behavior of a subject without influencing it in any way. The research population consisted of15 listed companies.

The data collection techniques that were employed for their search include the use of structured questionnaires. The respondents were requested for their time prior to sending the actual questionnaire. In this study, the descriptive statistics such as percentages and frequency distribution were used to analyze the demographic profile of the participants.    The demographic data was tabulated using frequency and percentages.

From the study, it’s evidently that the financial reports have a major role in making investment decisions.

ABSTRACT

The objective of the study aimed to find out the role of financial reporting in investment decision making. A case study of listed companies in the Nairobi stocks exchange. (NSE) the study was guided by the objectives; to evaluate the performance of a company depending on how it makes its investment decisions based on the financial reports, to examine how a set of analytical tools will aid investors in assessing the financial statements of the corporate organization and to find out the role of financial reporting in making investment decisions.

This research adopted a descriptive research design. A descriptive research design is a scientific method which involves observing and describing the behavior of a subject without influencing it in any way. The research population consisted of15 listed companies.

The data collection techniques that were employed for their search include the use of structured questionnaires. The respondents were requested for their time prior to sending the actual questionnaire. In this study, the descriptive statistics such as percentages and frequency distribution were used to analyze the demographic profile of the participants.    The demographic data was tabulated using frequency and percentages.

From the study, it’s evidently that the financial reports have a major role in making investment decisions.