Impact Of Published Financial Statement On Investment Decision (A Case Study Of First Bank Nigeria Plc Lagos)
👁🗨Download up-to-date Post UTME past questions here
📩Get complete project / seminar material for any topic
To God Almighty for his undeserved favour and my family, Dad, Mum, Ngozi, Nkem,, Oby, Chinedu, Onyeka, Okwuchukwu for showing me a love that is real.
My special thanks and utmost gratitude goes to God Almighty, for his grace and guidance throughout this project work. Most especially, I thank God for his protection throughout my stay in this school for my yesterday, today and my new tomorrow to him be all glory.
I’m highly indebted tomy Supervisor, Mr. C.I. Nkwocha, for his patience and understanding. His constructive criticism and suggestions made it possible for me to complete this work. His Brotherly and sincere guidance really touched me. I would also like to express my sincere appreciation to my lecturers, especially Mr. Okezie B.N. (HOD), Mr. C. Osondu, Dr. U. Ibeaja for impacting into me, the rudiments of accounting and for preparing me for the future challenges of the profession.
I owe a lot to my family Dad, for your fatherly advice, which helped me a lot. Mum, you are my everything. I will always remain grateful for your financial support and your kind words, which kept me going, especially when I thought there was never going to be headway. To my sisters, Mrs. Ngozi Ibezim, Mrs. Kem Anigbo, Oby Ndibe and my brothers, Chinedu, Onyeka, Okwuchukwu, you all still mean the world to me.
I could never ever give you all up for another. Your encouragement, understanding, financial support and the bond between us were a great assurance to me. I made it at last.I’m ever so grateful to my best friend Nwankwo Amarachi V. you were always there when I needed your most, thank you so much for believing in me. I also want to express my gratitude to the library staff of all institutions I used, especially the library staff of Federal polytechnic Nekede Owerri. I’m equally grateful to the staff of First Bank Nigeria PLC for their assistance and co-operation in the course of this project work.
Finally, my thanks and sincere appreciation go to friends of the family, also tomy colleagues, my roommate and my close friends who have been supportive and great company especially, Okechukwu, Onyeka (AB),Asiegbu Chuka ( Ceazer), Chidi, Ngozie, Baron, Iyke and Hero. You all made my stay here worth wile. May God bless you all so richly, and see you through the rough times ahead.
This research work is based on the IMPACT OF PUBLISHED FINANCIAL STATEMENT ON INVESTMENT DECISION (A CASE STUDY OF FIRST BANK NIGERIA PLC LAGOS).
The objective and purpose of the study is to identify the problems which lack of published financial statement creates on investment decision of a company and to appraise the usefulness of the financial statement to investors. Data for the research were collected from both primary and secondary sources; Questionnaire and research question was simple percentage and chi-square statistics was applied for the test of hypothesis.
The following findings were revealed:-
- That the financial reports influence the investor’s investment decision making.
- That it is necessary that expert should be made available and be understood by the users for effective decision-making.
Consequence upon the finding, the following recommendations was made:-
- That much importance should be attached to the published financial statement of companies by investors.
- Public enlightenment programmes should be increase to the advantage of investors.
- That enlightenment programmes should be packaged through the media to the investors.
Table Of Content
- i Title page
- ii Approval page
- iii Dedication Page
- iv Acknowledgement
- v Abstract
- vi Table of Content
- 1.0 Introduction
- 1.1 Background of the study
- 1.2 Statement of the problems
- 1.3 Objective of the study
- 1.4 Research question
- 1.5 Statement of hypothesis
- 1.6 Significant of the study
- 1.7 Scope of the study
- 1.8 Limitation of the study
- 1.9 Definition of terms
- 2.0 Literature Review
- 2.1 Brief History of the study centre
- 2.2 Financial reporting development
- 2.3 Importance of financial statement
- 2.4 Defect and credibility of financial statement
- 2.5 Problem of published financial statement
- 2.6 Financial Statement Analysis
- 2.7 Ordinary share investment strategies.
- 2.8 Financial Ratio Analysis
- 2.9 The right of Shareholders
- 3.0 Research design and Methodology
- 3.1 Research Design
- 3.2 Source/Method of Data Collection
- 3.3 Population and Sample size
- 3.4 Sampling Techniques
- 3.5 Validity and Ability of Measuring Instrument.
- 3.6 Method of Data Analysis.
- 3.7 Technique for testing Research Hypothesis
- 4.0 Presentation and analysis of data
- 4.1 General Characteristics of Responses
- 4.2 Presentation of data
- 4.3 Analysis of data
- 4.4 Test of hypothesis
- 4.5 Interpretation of result
- 5.0 summary, conclusion and recommendation
- 5.1 Summary of findings
- 5.2 Conclusion
- 5.3 Conclusion
- 5.4 Recommendations
1.1 Background Of The Study
Accounting information is defined by statement of accounting standard (SAS) No 2 refers to the data that are found in the financial statement. The financial statement provides a continuing history quantified in monetary terms of economic activities or economic resources and obligation of a business.
Accounting information serves as a parameter for evaluating the overall performance of a business enterprise. Accounting information as contained in the financial statement is used in management decisions in the present and future, and in a basis on which past and resulting variances from the predetermined or standards are analyzed and controlled. Thus accounting information communicated by accounting records vis-à-vis published financial statement serves as a guide to management and shareholders indecision to invest or dis-invest.
Accounting information as contained in the financial statement cannot only be related to management and equity holders, it cut across various categories of users such as the government, creditor’s Employees, other corporate bodies, financial Analysis and commentators, and potential investors.
Financial statements provide information of value to company officials as well as to various outsiders such as investors and Lenders of funds. Publicly owned companies are required to periodically publish general purpose financial statements are includes a balance sheet, an income statement and a statement of cash flow. Some companies also issue a statement of stock holder’s equity and a statement of comprehensive income, which provides additional details on changes in the equity section of the balance sheet.
Financial statement issued for external distributions are prepared according to generally accepted accounting principles (GAAP), which are the guides for the content and format of the statement.
Financial statement includes notes, which are considered as integral part of the statement. The notes contain required disclosures of additional data, users. The financial statement of publicly owned companies also include an auditor’s report, indicating that the statement have been audited by independent auditors. The auditor’s opinion is related to fair presentation in conformity with GAAP.
1.2 Statement Of Problem
The financial statement should provide accurate financial information for which the shareholders can effectively manipulate to get the best out of their investment. There is no doubt that some firms or organization encounter problem when they lack financial statement in taking their investment decision.
Some of these problems encountered are:poor statement of cash flow i.e. the company will be unable to measure the flow of cash into and out of the company. If a company is composed of many subsidiaries, divisions and other companies, it will be unable to present the financial information.
1.2 Statement Of Problem
The financial statement should provide accurate financial information for which the shareholders can effectively manipulate to get the best out of their investment. There is no doubt that some firms or organization encounter problem when they lack financial Statement in taking the investment decision.
Some of these problems encountered are
- Poor statement of cash flow i.e. the company will be unable to measure the flow of cash into and out of the company.
- They will lack statement of financial position i.e. unable to list the company’s asset and claims against them.
- Lack statement of earning, i.e. they will not have the summary result of their company’s business operation (revenue and expenses).
- They will have problem of financial management, which involves all the activities that will enable companies to obtain capital for growth, allocate their resources efficiency, and maximize the income potential of their business activity which the management requires.
- They will not know how to maximize resources and utilization.
- They will not know when to acquire/ absorb another business to expand and poor financial practices.
- Expose to variety of risk taking without the proper background information.
- They will have problem in deciding where and when to plunge their resources, which are limited.
1.3 Objective Of The Study
The researcher aims at achieving the following objectives:
- To identity the impact of published financial statement on investment decision
- To identity the problems which lack of published financial statement creates on investment decision of a company.
- To find out a solution to the existing problem.
- To appraise the usefulness of the financial statement to investors.
- To review the extent of the appreciation of such financial information and the use in investment decision.
1.4 Research Questions
The research work intends to provide answers to the following questions;
- Do you consider published financial statement important to investment decision?
- Is there any direct influence of published financial statement on investors to their decision-making?
- Does lack of published financial statement create problem on investment decision to many investors?
- Do investors insist on reading published financial statement of companies before making their decision?
- Are investors normally satisfied with the information content of the financial statement?
1.5 Statement Of Hypothesis
As a guide to the achievement of the objectives of the study.
The following hypothesis was formulated:
- HO: The investor’s investment decision making does not depend on the shareholders to understand financial statement.
Hi: The investor’s investment decision making depends on the ability of the shareholders to understand financial statement.
- HO: Lack of published financial statement does not create problem on investments decision of a company.
Hi: Lack of published financial statement create problem on investment decision of a company.
- HO: The observed improvement in the liquidity and profitability position of the company does not justify the cost of maintaining an effective investment decisions?
Hi: The observed improvement in the liquidity and profitability position of the company justifies the cost of maintaining an effective investment decision?
1.6 Significant Of The Study
This study is going to have theoretical and practical significance.
- Theoretically, this study is going to contribute to the general knowledge of financial statement by showing the importance of published financial statement to investment decision making of companies.
- Practically, this study is going to be of immense importance to students carrying out research on published financial statement.
- This study will also be of importance to students in tertiary institutions and future researchers.
- It will also be of use to companies, private bodies and the general public and it will also be of help and great importance to investors as well as the management of companies in their investment decision.
- Finally, it will also act as source of information to wide range of users for assessing the stewardship of management and making economic decisions.
1.7 Scope Of The Study
The scope of the study for this research work is on first Bank of Nigeria Plc Lagos, which is the leading company in the banking sector. It involved the following specialized banking services.
- Consumer banking services
- First education saving scheme
- Value card service
- Master card
- First retirement saving scheme (FRSS)
- Western Union Money Transfer
The bank has its subsidiaries and Affiliates
- First trustees Nigeria limited
- First register Nigeria limited
- Value card Nigeria plc (VNP)
- First insurance Brokers limited
- Kawaka Discount House limited (KDHL)
- Bonque International Du Benin (BIDE)
1.8 Limitation Of Study
This research work will be constrained by certain factors. The chief of which will be timed. The availability of time for data collections will be inadequate to permit an extension of the scope of the work.
There will be also impediments due to finance, since the researcher will still be a student. Expenses in the respect of photocopying and collection of material and transportation will be much.
Finally, problems that will be experienced with the respondents also retarded the pace and result of the researcher. The indifferent attitude will of the most respondents will be nothing to write home about, as they may feel that the questionnaire may not be returned while some may not duly complete it.
1.9 Operational Definitions Of Terms
It is a collection of data organized according to logical and consistent accounting procedures. Its purpose is to convey an understanding of some financial aspects of a business firm.
This reflects the effect of management operating decisions on business performance and the resulting profit and loss for the owner’s of the business over a clearly specified period of time.
Is the process by which the top management decides what action to taken by the management for betterment of the company.
It is the decision taken by investors before investing in that firm/company.
It is the financial accounting record of a company / firm.
I bet you, the complete material is fully loaded. This is just an excerpt. The Material is in MS-Word Format which you can easily edit and is comprehensive for a complete research work for this topic
📩How to get the complete material
The complete material is
N3,000. You are to make payment to :
Account No: 0811003731,
Bank Name: Access Bank,
Acct Name: Samphina Academy.
The mode of payment is through bank transfer or bank deposit
After Payment, send us the following information:
- 📍Payment Details (For Transfer:Send the account name you transferred money from | For Deposit:Snap and send the deposit receipt)
- 📍Project / Seminar Material you need (Topic)
- 📍An Active Email Address
The three(3) ways in which you can send us these information are:
- Through our email address “firstname.lastname@example.org”
- Through Text Message to “08143831497”
- Through WhatsApp “click to start chat“
After Sending your information and making payment, the material will be forwarded to you in less than 10mins via your email address
How to nail it on the head during your project defence
You are through with writing that project. Now what?
You have found yourself at that point where you have to defend what you have written. Of course you have to stand in front of your supervisor and other literary personalities to prove that you know what you wrote in your project paper. Unfortunately, the more you think about it, the more it looks like you are about to face a legion. It is not a war. But the emotion of dread welling up inside of you makes it look like one. So now you are asking yourself questions.
- How am I going to start?
- I hope I will do well enough to get an A.
You really want to nail it, but you need to come to terms with exactly how to get everything in perfect control. Especially your emotions of fear that seem to make a wreck of you every time you think about public speaking.
So here is the deal. I want to help you avoid that feeling that would ruin your precious moment if you dare to let it. And we are going to do it together.
I am going to highlight some very important tips to help you get in control for you to be comfortable enough to move from that feeling of DREAD to CONFIDENT; and making an awesome Impression for that great rating your supervisors should be giving to you so freely.
Consider these tips as you prepare for your defence. We will be taking them one after the other so here we go.
Watch Your Body Language And Keep It Confident:
Can you tell that a person is falling apart if they look confident? … If I can second guess you rightly, am sure you answered no to that question. Remind yourself that you need to come out that way. Now this might seem like a huge big deal when you are dealing with the foreboding. Maintaining a poise of confidence is very important. So find your most comfortable position, sitting or standing and draw up your body. You must exude confidence. It is something you need to do for yourself. People can only see what you allow your body language to show. So you must endeavour to put that out. Remember the story of David and Goliath? … At the end of your defence day, you want to be David.
Dress In Your Most Comfortable And Impressive:
Am sure this one is a no brainer. However I must highlight that you choose comfortable pieces. You don’t want to look so good and yet look like you were forced to wear something that does not belong to you. It’s great to ensure that as impressive as your clothes are on you, that they are also very comfortable.
Speak With Authority:
Going hand to hand with that aura of confidence is your most powerful asset:your words. If you look that confident, your words must not come out like whimpers. To be able to pull this off, you definitely need to speak as deliberately as possible in expressing yourself. Let them also hear what they see.
Use, Your Gestures:
I have often found this to come to my rescue in dealing with shyness and conveying my confidence. Usually it gives you an edge to also drive home your point. You must, however, ensure that you do not over use it. It doesn’t mean that your hands should be flying all over the place. That would be absolutely unnecessary. If you do this well, after a while you will realize that you are not as self-conscious as you used to be at the very start. For most situations, it would have completely disappeared altogether; leaving a really confident you talking.
Have A Good Opening And Closing Line:
Make sure you have perfected a good opening line. You should also be armed with a good closing line too. Try and rehearse it to a friend. If for the first time you presented it, your friend does not say “wow, that’s beautiful” or something like that; just know you need to keep refining it until you get the perfect line. Both opening and closing lines will go a long way in how impressed your panel gets to rate you high.
Make Sure You Know Your Work:
Certainly you should understand how important it is to know your own work from start to finish. Not having in-depth knowledge of your own work is tantamount to a suicide mission. Why should you kill yourself?
When all is said and done, this is what you came to defend in the first place. You should know your work from A to Z.
Prepare For The Questions:
Now this part is truly essential. You must be sure you do not floor all the good work you did on your presentation by not answering correctly. You must pay attention to the questions you are asked to be sure you will give the right answer. Many people get it wrong at this stage and spoil their good presentation. When you do not understand any question do endeavour to ask the person to expatiate what they mean before you answer.
These tips are by no means exhaustive, but applying these tips will give you some necessary advantage you need for a great outcome. Of course that outcome would mean that you eventually earn all your points on this project.
The structure of a good project work
Undergraduate projects in Nigeria is a prerequisite for graduation amongst Nigerian tertiary students who will which to obtain bachelors degree in their respective courses of study such as accounting, banking and finance, business administration and a host of others. Writing an undergraduate project in Nigeria for final year students entails a lot both financially and otherwise. Being able to develop any final year project depends on getting a researchable topic whether it is Accounting Undergraduate project topics, Banking and Finance research topics or banking and finance project topics and materials and it all requires diligent hard work of students who are willing to develop best undergraduate projects in Nigeria and graduate in flying colors.
A typical Undergraduate project in Nigerian tertiary institutions can be said to be divided into five or six chapters depending on the format of the school and course of study which are
The introduction of an undergraduate project states the main research problem and research argument. What precisely the study is all about and why it is important. It looks at the originality of the research work and how it will fill the gap in other studies. Justification for a research undergraduate topic should not be lengthy before it has been explicitly stated.
Below are the contents in chapter one of an undergraduate research project which includes;
- Background of the study,
- Statement of the problem,
- Objectives or aims of the study,
- The research questions,
- Research hypothesis,
- Significance of the study,
- Scope of the study,
- Limitations of the study and
- Operational definition of terms.
2. Literature review
Literature review of any undergraduate research work, be it business administration project topics or Economics project topics just to mention a few is very critical to securing a high grade in one’s project work. The literature review of a research process uncovers what other writers have written about the student’s topic. A student’s undergraduate research work should include a discussion or review of what is known about the subject and how that knowledge was acquired. The review could conclude with a brief summary of the literature and its implications. The contents of the literature review are the theoretical review, conceptual framework, empirical review and summary of literature review.
3. Research Methodology
This section includes a description of the research methods used in the undergraduate research work such as the sample size, data collection methods, measurement instruments, research data analysis procedures and the population from which the sample was selected. This section also describes the method used in selecting the sample or samples, validation and reliability of the instruments used in the research work. There are different research statistical techniques used in undergraduate research work such as SPSS, e-views etc.
4. Results & Discussion
This section presents and discusses the data analysis results used in an undergraduate research work, the results of each analysis is being summarized, tabulated, and then discussed for each research question. Then for each research hypothesis, the statistical test of significance selected and applied to the data is briefly described, followed by a statement indicating whether the hypothesis was supported or not supported. In presenting the result analyses/summary in an undergraduate project tables and figures and or graph are used to add clarity to the presentation.
5. Summary, Conclusions And Recommendations
This section summarizes the findings of the study in an easy to understand manner. It also explains the practical implications of those findings, and points to recommended directions for future research in that area.
This is where every source cited in the undergraduate research work is being included. Every undergraduate research work must be properly referenced for its authenticity.
Choosing A Good Project / Research Topic
Students in Nigerian universities these days wish to choose a very simple project topic/material. There is no issue choosing a simple project topic; the only problem is your ability to choose a good project or research topic that your supervisor will easily approve for you.
Most project supervisors really want to see how good his or her project student understands his or her surrounding through the kind of topic he or she chooses for their project work.
There are some project topic that are not reject-able; for instance in Nigeria of today; what do you think is the major issue on ground now?
If a project student can choose or craft a topic on the effect of dollar increment on the economy of Nigeria. Such project topic will be very interesting to write on.
Now what are the qualities of a good project topic?
- The materials for the project topic must be easily assessable.
- The project topic itself must be meaningful.
- The variables must be able to give a clear aim of the project topic.
What do I mean by variable?
Well I am deriving my point from the area of ; the variables here are those main words in the project topic.
Like the above project topic; the effect of dollar increment on the economy of Nigeria. You can see the main variables that really define this project topic are:dollar, increment and economy.
Before you present your topic to your project supervisor, first of all understand your project topic, and then secondly try to do some research for your topic to see if at least you can get up to 60% of what you need to write the complete project.
I said that above because you might have a very nice topic that the materials are not available online and there are no books as regard the topic; in this case the project topic becomes difficult for you even though the topic is catchy.
What do I mean by your topic being assessable?
Well what I mean is very simple and easy to understand. Simply pick your project topic, type it on google and see if you will have at least a good background for the topic you are writing on.
If you can have a good background for your project topic and you can understand the problem associated with the project topic, then I believe the aim of the project is not far-fetched.