DISCLOSURE IN FINANCIAL REPORTING AND INVESTMENT DECISIONS

Abstract

In light of the many financial scandals and unexpected bankruptcies that investors around the world have had to deal with, this study looked at how openness in financial reporting affects investment decisions. A quantitative correlational design was employed, and a purposeful, convenient sampling technique was utilised to recruit respondents from experts in accounting and auditing. The stratification technique was utilised to sample respondents from two strata: accountants and auditors of 20 randomly selected firms within the Southern Nigeria region, resulting in a total of 300 participants. In order to meet the objectives of the study and conform to the research hypothesis, the regression analysis was conducted with the aid of SPSS version 23. The finding from the analysis F-(stat) = 60.039 and p = 0.000b < 0.05 alpha, revealed that the transparent disclosure of corporate reports has a significant impact on investment' decisions. Based on the above, the study among other recommend that external audit should be carried out in stages by a number of different consulting companies rather than by a single accounting firm.