期刊名称：European Journal of Business and Social Sciences
印刷版ISSN：2235-767X
出版年度：2016
卷号：5
期号：6
页码：279-303
出版社：European Society of Business and Social Sciences
摘要：ne of important assumptions in decision making process and improvement economyis existence of quality information. Significant number of this information comesfrom accounting information systems and from financial statements. Financialstatements have to provide realistic and objective picture of realistic business condition ofcertain company. There are numerous factors that affect the decision making of aninvestment plan. Financial Reporting Standards and Practices have in the recent past comeunder great criticisms, demanding that accountants take further steps in ensuring that thetrue and fair view of the actual worth of business are also incorporated in the financialstatements published by them. The general objective was to examine the effect of financialstatements in investment decision making by commercial banks using Bank of Kigali as thecase study. The study adopted a descriptive survey design. The target population of thestudy was 150 respondents from bank of Kigali main branch. The sample size of 110respondents was determined using Yamane’s formula. Stratified random sampling wasused to determine the sample size. The study used both primary and secondary data, wherequestionnaires, interview and annual reports of BK were used. Primary data for the studywas collected using structured questionnaires that were administered to the respondents.Quantitative data obtained from close ended questions will be analyzed by using descriptivestatistics. Narrative data obtained from interviews and open ended questions in thequestionnaire were analyzed using qualitative approaches. Data collected was analyzedthrough SPSS version 21. Data analysis involved statistical computations for averages,percentages, and correlation and regression analysis. Descriptive and inferential statisticsand content analysis was used for specific data. The study established that financialstatement analysis is the single most important statement in investment decision making.The study concludes that, a combined 82% of the investment decision making are based onfinancial statements analysis as indicated in the measure of association, while 18% can besaid to go to other factors. The study satisfied the objectives of the study which focused onestablishing the extent of use of financial statements in investment decisions making. Thestudy recommends that commercial banks devise a self-assessment form with benchmarkson the key areas of assessments to be codified within a document for clients to read and useit for self-assessment. From such assessment banks, can develop categories for customers,based on the investment decision making, the security expected and term of the investment.This would serve to minimize on the time taken in investment decision analysis
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