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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 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 chi-square. 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 in investment decision making and recommends that no investment decision should be taken without the consideration of a company’s financial statements.


Cover page——————————————————————————iTitle page——————————————————————————-iiCertification page——————————————————————–iiiDedication—————————————————————————–ivAcknowledgement——————————————————————vAbstract——————————————————————————-viTable of content——————————————————————–vii


1.0 Introduction———————————————————————11.1 Historical background———————————————————21.2 Statement of the problem—————————————————31.3 Objective of the study——————————————————–41.4 Research hypotheses———————————————————51.5 Research questions———————————————————–61.6 Significance of the study—————————————————-71.7 Scope of the study————————————————————81.8 Limitation of the study——————————————————-8


2.0 Introduction——————————————————————102.1 Features of financial statement——————————————122.2 Functions of financial statement—————————————–122.3 Objectives of financial statement—————————————-132.4 Analysis of financial statement——————————————-142.5 Users of financial statement———————————————-142.6 Attributes of an ideal financial statement—————————–182.7 Types of financial statement———————————————-212.8 Definition and nature of investment decision————————292.9 Importance of investment decision————————————-322.10 Types of investment decision——————————————-342.11 Investment evaluation criteria——————————————362.12 The of financial statement in investment decision making422.13 Types of ratios and their uses——————————————-43Reference


RESEARCH METHODOLOGY3.0 Introduction——————————————————————-493.1 Research design————————————————————–493.2 Area of the study————————————————————-503.3 Population of the study—————————————————-503.4 Sample size and sample technique————————————–503.5 for data collection——————————————523.6 Sources of data collection————————————————-523.7 Methods of data collection———————————————–533.8 Method of data presentation and —————————543.9 Validity of instrument used———————————————-563.10 Reliability of the instrument used————————————56Reference


DATA PRESETION AND ANALYSIS4.1 Data presentation———————————————————–584.2 Data ——————————————————————584.3 Test of hypotheses———————————————————-67


SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS5.1 Summary of findings——————————————————–725.2 Conclusion———————————————————————735.3 Recommendations———————————————————-74Bibliography ———————————————————————-76Appendixes ———————————————————————78



Corporate organizations owe a duty to fully disclose matters concerning their operations so as to aid investors in making investment decisions. Both large and small organizations in addition to satisfying the legislating requirement tend to retain existing investors and to attract potential ones through the publication of their financial statements where the capital stock of a corporation is widely held and its affairs are of interest to general public relations. The discussions and illustrations of the study will be centered on the financial statement presented to shareholders and also available for potential investors, bond holders and trade creditors as a tool of information for investment decision. Financial statement based on result on past activities are analyzed and interpreted as a…..

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