Disclosure of Financial Statements and Its Effect on Investor’s Decision Making in Jordanian Commercial Banks

Saleh, Isam; Al-Ghusain, Nawaf Ahmed

doi:10.5539/ijef.v10n2p20

Cited by 4 publications

(4 citation statements)

References 7 publications

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“…Furthermore, financial reports must be meticulously crafted and contain extensive transparency, embracing both financial and non-financial information within and beyond the financial statements. Hence, the main objective of financial reports is to furnish dependable information regarding the genuine and current financial status of a business venture, thereby aiding investors in formulating their investment choices (Saleh, Alghusain, 2018: 21) [21] . The Institute of Chartered Accountants in England and Wales (ICAEW) contends that even if corporations offer more general risk information rather than specific companyrelated information, there are two conflicting assumptions.…”

Section: Concept Of Investor Decisions and The Importance Of Accounti...mentioning

confidence: 99%

The impact of corporate surplus disclosure on financial reporting quality and its reflection in investor decisions: Evidence from Iraqi banks

Hussein,

Alo,

Qadir

2024

Int. J. Finance Manage.

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The research intends to analyze the impact of corporate excess disclosure on the quality of financial reporting and its reflection in investor decisions in the local environment of Iraqi banks. The research objective was pursued through the implementation of an experimental approach, with data being gathered via informational content analysis of reports derived from the annual financial statements of a sample of 12 banks listed in the Iraq Stock Exchange for the period of 2012 to 2021. A checklist was employed to gather data on corporate excess declaration, while profits quality was utilized to assess the accuracy and reliability of financial reports. Additionally, earnings multiples were employed to suggest investment decisions targeting the banks in the research sample. The research yielded various findings, with the most significant being that the disclosure of corporate surplus in accounting has a favorable impact on enhancing the quality of financial reporting. Furthermore, this disclosure greatly increases the appeal of the institutions in the research sample to potential investors. The findings also validated that the disclosure of company excess would have a more significant impact on investor decisionmaking when financial reporting quality acts as a mediator.

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Section: Concept Of Investor Decisions and The Importance Of Accounti...mentioning

confidence: 99%

The impact of corporate surplus disclosure on financial reporting quality and its reflection in investor decisions: Evidence from Iraqi banks

Hussein,

Alo,

Qadir

2024

Int. J. Finance Manage.

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“…Information disclosed through several components of the annual report not only helps in making prompt investment decisions but also helps users make financing decisions. Isam & Nawaf (2018) analyzed the effect of disclosures of financial statements in investment decisions and found that trustworthy information can be found from annual financial statements, and Investors use the information provided through annual financial statements in making their investment decisions. An empirical study carried out by Kitindi, Magembe & Sethibe (2007) on lending decisions and found that statements contained in the annual reports were the key sources of information and helps lenders significantly in making their lending decision.…”

Section: Literature Reviewmentioning

confidence: 99%

Importance of Several Components of Annual Report to the Investors: A Study on the Northern Part of Bangladesh

Roy,

Dash

2023

ijbesd

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This study examines the perceived usefulness of several components of the annual reports in the decision-making process of investors in making investment decisions. Corporations provided their financial information i.e financial result, financial conditions, and distributions to shareholders etc. to the users through corporate annual report. The main objective of the study is to measure the level importance of the several parts of annual report in providing useful information to the investors. A well-organized questionnaire was used to collect data from the respondents. Descriptive statistics, reliability tests, correlation, regression, etc., were applied to detect the result of the study. The development of the survey indicates that the annual report provides the required information to the investors for their rational investment decision, but some components of the annual report are not helpful at all to the investors. Balance Sheet, Statement of Cash Flow, Notes to the Financial Statements, Auditors Report, Five Years Financial Highlights, and Income statement were providing more valuable information regarding investment. The findings of the study will encourage preparers to provide reliable information as well as encourage users in using yearly report of corporations.

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“…Most investors focus on the financial benefits of their investments [1]. Several studies have conducted investigations related to the influence of financial information on investment decisions [2][3][4] [5] [6].…”

Section: Introductionmentioning

confidence: 99%

Joint Influence of Financial and Non-Financial Information on Investment – Relevant Decisions

Aeni¹,

Sari²,

Susilowati³

2022

Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 Jul

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This research integrates financial and non-financial information that is useful in investment decision-making. The financial information used in this study is book value per share (BVPS). While an environmental performance valuable information in decision making is used as non-financial information. This research aims to investigate how information types (financial and non-financial) affect investment decisions. This research is a laboratory experiment using a 2x2 between-subjects design. Participants of this study were 39 students with accounting and management background who acted as investors. Participants in this study respond to scenarios involving investment decisions. The data analysis used to test this research hypothesis is an analysis of variance (ANOVA). The results of this study show that BVPS and environmental performance influence investment decisions. Specifically, an investor who receives BVPS information is improved, and positive environmental performance tends to consider higher investment decisions than investors who receive decreased BVPS information and negative environmental performance. Finally, this study discusses the implications of research results for companies in designing business strategies and further research development opportunities.

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Disclosure of Financial Statements and Its Effect on Investor’s Decision Making in Jordanian Commercial Banks

Cited by 4 publications

References 7 publications

The impact of corporate surplus disclosure on financial reporting quality and its reflection in investor decisions: Evidence from Iraqi banks

The impact of corporate surplus disclosure on financial reporting quality and its reflection in investor decisions: Evidence from Iraqi banks

Importance of Several Components of Annual Report to the Investors: A Study on the Northern Part of Bangladesh

Joint Influence of Financial and Non-Financial Information on Investment – Relevant Decisions

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