Financial Statements and Personal Characteristics in Investment Decision Making

It is believed that financial statements are the key documents for any organizations for the investment decision making. Investment decision making depends upon the quality information obtained by the various sources and it is concluded in this research which is based on the findings that financial statement plays a vital role in investment decision making and recommends that no investment decision should be taken without the consideration of a company’s financial statements.

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ANALISIS INFORMASI KEUANGAN KOPERASI SYARIAH NURI (KSN) JAWA TIMUR SEBAGAI ALAT PENGAMBILAN KEPUTUSAN INVESTASI

INDONESIAN JOURNAL OF ACCOUNTING AND GOVERNANCE ◽

10.36766/ijag.v3i1.25 ◽

2019 ◽

Vol 3 (1) ◽

pp. 82-100

Author(s):

Devi Lestari Pramita Putri ◽

Wahyu Maulana

Keyword(s):

Decision Making ◽

Quantitative Research ◽

Financial Analysis ◽

Investment Decision ◽

Sampling Technique ◽

Financial Statements ◽

Financial Information ◽

Economic Conditions ◽

Investment Decision Making ◽

Decision Making Tool

Nowadays, economic conditions in Indonesia are unstable, with the result that it is needed to look for the information from certain or credible sources. Especially in financial information because of that, it is very influential to those who play an important role in policymakers. Besides, the precise financial information is also needed by the investors and creditors who are used as a basis for consideration to make profitable investments or vice versa. The objective of this study is to find out the financial information as an investment decision-making tool and to find out the level of health of cooperatives in the financial sector as financial information to investors and creditors. Then, the object of this study is Koperasi Syariah Nuri in East Java. This study employed descriptive quantitative research. The sampling technique is purposive sampling. The data sample used is in the form of financial statements from 2015 to 2017. Based on the data analysis, the results show us that: capital ratio in healthy criteria, cash ratio in liquid criteria, ROA insufficient criteria, ROE insufficient criteria, Fewer criteria generated by the service operational independence ratio. Keywords : Financial information, Financial analysis, and Investment decision

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Analytical capacity of financial statements against the backdrop of the COVID-19 pandemic

Economic Analysis Theory and Practice ◽

10.24891/ea.19.10.1794 ◽

2020 ◽

Vol 19 (10) ◽

pp. 1794-1821 ◽

Cited By ~ 1

Author(s):

O.V. Efimova ◽

O.V. Rozhnova

Keyword(s):

Decision Making ◽

Financial Performance ◽

Financial Reporting ◽

Business Strategy ◽

Investment Decision ◽

Financial Statements ◽

Cash Flows ◽

Foreign Companies ◽

Investment Decision Making ◽

The Impact

Subject. The paper explores the analytical capabilities of information disclosed in financial statements in the context of the COVID-19 pandemic. Objectives. The purpose is to identify the impact of the pandemic on financial statements and their analytical capabilities for investment decision-making. Methods. The study draws on methods of logical, statistical, comparative, and linguistic analysis. We analyze financial statements of Russian and foreign companies, paying special attention to the completeness of disclosed information on the impact of the pandemic on business and financial performance. We review annual financial statements for 2019, and interim reports for 2020. Results. We unveil the areas of disclosures that are most critical for the investment community and investment decision making, and vital for the analysis of financial performance and cash flows, given the unprecedented impact of the COVID-19 pandemic. The findings may be applicable to financial reporting preparation by economic entities in terms of disclosure on various forms of transformation and adaptation of businesses to the new crisis conditions; modernization of accounting rules at the level of external and internal standards in the direction of coordinating financial and non-financial reporting information; enhancement of analytical capacity of disclosures. Conclusions. The study confirms the scientific hypothesis that investors require detailed disclosure in all areas of the pandemic impact. To evaluate the going concern assumption and to forecast cash flows, users need disclosures on business strategy, the business model and its adaptability to the conditions of the new normality, sources of cash flow generation, and their use areas.

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