Tag Archives: Investment decisions

Ethical Principles and Faithful Representation of Financial Reports of Quoted Companies in Nigeria (Published)

Business transaction records form the basis of financial statements which inform stewardship assessment and investment decisions. Good financial reports aid informed economic decisions which enhance efficiency in the allocation of resources. Allegations are rife of cases of deliberate falsification of financial statements even in the face of internal and external auditors, accounting standards and financial regulations. Using survey research design based on a population of 4893 accountants and auditors of 169 quoted companies and four regulatory bodies in Nigeria, the study investigated the relationship between ethical principles and faithful representation of financial reports. Four hundred copies of the research instrument with a reliability test coefficient of 0.830 using the Cronbach’s alpha statistics were distributed with a 92.5% return rate. Data analysis employed the use of descriptive and inferential statistics. The results indicate that ethical principles influence financial reporting quality significantly ( F(4, 366) = 298.719, Adj. R2 = 0.763, p = 0 .000). The study recommends continuous ethical orientation for accountants, managers and auditors of Nigerian quoted companies.

Keywords: Ethics, Faithful representation, Financial Report, Investment decisions, Quoted companies

The Effect of Audit Report on Investments and Lending Decisions in Ghana (Published)

The Purpose  of this research was to find out  whether loan and investment decisions will differ if  the loan or investment request was accompanied by audited  Financial Statement  from loan and  investments amount granted when the when the loan and investment request is not accompanied by audited Financial Statement.. An experiment involving 68 loan and investment officers was performed.  We manipulated the presence of audited Financial Statement (Audited Vs unaudited Financial Statement.) Our main findings were that the mean loan amount differ when loan application is accompanied by audited accounts from when loan applications are accompanied by unaudited accounts. We also found that investment decisions when accounts are audited differ from investment decisions taken when accounts are not audited. We observed that the mean loan and investment amount was larger when there was an audited Financial Statements

Keywords: Experimental Design, Financial Statements, Investment decisions, Loan decisions

CAPITAL INVESTMENT DECISIONS IN SMALL AND MEDIUM SIZED ENTERPRISES IN TURKEY (Published)

As accepted by economists, Small and Medium Sized Companies (SMEs) are very important for Turkish economy from various points of view. Professional management is becoming very popular in Turkish SMEs and family owned and managed companies began to realize the advantages of institutionalization and professionalization for sustainable growth and achievement. In line with this trend, this study researches how investment decisions are being made in SMEs in Turkey and to get insight as to the level of professionalism and utilization of financial tools and techniques for this purpose. With the objective of exploring how capital investment decisions are made in SMEs in Turkey, a survey was conducted among 65 SMEs located in Istanbul from production, construction and service industries. The main conclusion is that despite awareness on theoretically superior generally accepted evaluation measures, they are not used by the vast majority of the decision makers in the analysis of capital investments in SMEs in Turkey. By analyzing and outlining the As-is situation, this study aims to contribute to increase the awareness level; thus, motivate decision makers to interrogate and challenge the current situation in order to set up appropriate policies and action plans at both macro and micro levels.

Keywords: Capital budgeting, Investment decisions, NPV, Payback, SMEs