IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 4 NO. 7 2018

---

Effect of Financial Information on Investors’ Confidence of Listed Manufacturing Firms in Nigeria

Akachukwu H. Amaraihu & Benjamin E. Onodi

---

Abstract

The study examined the effect of financial information on investors’ confidence of listed manufacturing firms in Nigeria. To achieve the objective of this study, ex-post-facto research design was used. Data was analyzed using simple regression analysis. The findings revealed that financial information (interest coverage and dividend coverage) affects investor’s confidence. Conclusively, the failure of firms may not be due to non- generation of financial information but ineffectively, inefficiently and inappropriately utilization of the financial information generated in an organization. The study recommends that the use of modern application like information technology application in accounting should be introduced to enhance timely, efficiency and effectiveness of financial information. Also, financial information generated should be readily available for potential investors’ decision making. The qualities of financial information which include timeliness, clarity, relevance and accessibility of the information should be a guide in providing financial information. Finally, financial information should be seen as an important tool for decision making process in an organization and more encouragement should be given to staff in the performance of their duties. This will enhance efficiency and effectiveness of the financial information in the manufacturing firms.

keywords:

Dividend Cover, Financial Information, Interest Cover, Investors, Investors Confidence

---

References:

Abdulkadir, M., Hamza, H, & Muhammed, L.D. (2016). the effect of financial reporting on
investment decision making by banks in Nigeria.

Adeboyamudahiru, I K A & Yusuf, B. S. A. (2012) Accounting information system as an aid
to decision making in food beverage companies in Nigeria.

Adeyome K A, Isiawe D, Adetiloyek K A & Eriable, S. (2013) financial reports and
shareholders decision making in Nigeria: any connectedness

Alexandra, D. S. (2012). Managerial decision making and financial accounting information

Anaja, B. & Emmanuel, E.O. (2015) the role of financial statement on investment decision
making: A case of United Bank of Africa PLC (2004-2013)

Bahareh, B. & Seyed, Y.M. (2016), Role of financial information in management decision
making process.

Gorgieva T, Olvera and Kolva, Biagica & Nkohoski, Krume (2017) importance of financial
report for investment decision making in Nigeria

Micheal C E(2013) relevance of published financial statement and investment decision
making in the Nigeria

Njoku, P. O. (2003). Fundamentals of business finance and financial management companies
and allied matter act of 1990

Nweze, A. U. (2011). Profit planning: A quantitative Approach

Osuala A E, & Ugwumba, E.C. (2012). Financial statement content and investment decisions,
- A selected firms

Suh Collins Suh (2017) the role of financial statement in the investment decisions of a micro
finance institute MFI

Seyed SER, Zaini E, Norman M.S. & Romlahah (2016) financial information quality and
investment efficiemcy; Evidence from Malaysia.

Tom, M. (2011). Financial information and entrepreneurs and managers

Zoyal P I, Agaregh T, & Eneji B. E. (2017). effect of financial information on investment by
shareholders by banks in Nigeria

DOWNLOAD PDF

---

Back