The Influence of Organizational Financial Statements Analysis on Investment Decision Making.

Florian, Ndetico J. (2021) The Influence of Organizational Financial Statements Analysis on Investment Decision Making. Masters thesis, The Open University of Tanzania.

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Abstract

This study aimed at investigating influence of organisational financial statements analysis on investment decision making: A case of Moshi Urban Water Supply and Sanitation Authority (MUWSA) in Tanzania. The study was guided by four research objectives which were to evaluate the performance of Financial Statement in MUWSA; to examine the importance of using financial statements analysis as pillars to draw conclusions upon which decisions are made; to examine the extent at which financial statement analysis at MUWSA leads to desired decision-making; and perceptions of Staff and Stakeholders in adequacy of Financial Statement Analysis. This study employed descriptive research design. The study involved 1 managing director, 1 deputy managing director, 9 heads of department, 15 staff and 4 Stakeholders which were obtained through purposively and simple random sampling technique. Data were collected using questionnaire and interview guides. Data were analysed using descriptive statistics technique basing on study objectives with the aid of SPSS. The findings indicated financials are critical in investment decision making. Investors are confident with MUWSA financial reports so as to determine investment prosperity. Participants were knowledgeable with financial variables specifically, the gearing ratios, liquidity ratios and profitability ratios. Therefore, the study recommends that investors are strictly advised to use financial information in making any investment move which will help them to take various investment opportunities at hand and restricting Government influence in the preparation of the reports. Also, there is a need for investors to seek consultancy services in the use of financial reports for investment decisions. Keywords: Theoretical Literature Reviews, and Empirical Studies

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