Effect of Financial Information on Investors&rsquo; Confidence of Listed Manufacturing Firms in Nigeria

Akachukwu H. Amaraihu; Benjamin E. Onodi

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 CoverFinancial InformationInterest CoverInvestorsInvestors Confidence

References

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Effect of Financial Information on Investors&rsquo; Confidence of Listed Manufacturing Firms in Nigeria

Abstract

Keywords

References

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