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Effect of Financial Reporting on Investment Decision-Making in Nigerian Industrial Goods Firms

Ikilidih, Joy N and Mgbatogu, Obianuju

Abstract

This study ascertained the effect of financial reporting on investment decision-making in Nigerian industrial goods firms. Debt to equity ratio was used as the independent variable while firm share capital was used as the dependent variable. Data were analyzed with descriptive statistics and the hypothesis was tested using regression analysis via E-view 9.0. The study reported that Debt to Equity Ratio (DER) has significant effect on investment decision of industrial goods firms in Nigeria. The study therefore concluded that financial report analysis has significant effect on investment decision, hence the study recommended that as debt to equity ratio was found to be significant implies that debt to equity ratio is essential variable to investors in making investment decision, the study, therefore, firms should not relent in maintaining a reasonable proportion of debt in their overall capital structure to reduce risk to barest minimum.

Keywords

Financial reportinginvestment decision-making and Debt to Equity Ratio

References

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