CHINESE SMEs' USES OF FINANCIAL STATEMENTS IN DECISION MAKING

With a sample of 46 Chinese small to medium-sized enterprises (SMEs), this study examines factors that might affect firms' use of financial statements to make decisions. Financial statements contain insightful information about potential risk and return implications of various decisions. A logit analysis shows that owners of Chinese SMEs use financial statements to make decisions according to the frequency of available financial statement information and their ability to interpret the information contained in the financial statements. These results can help owners of SMEs, educators and service providers understand which factors affect the use of financial statements and the process by which financial statements are incorporated into SMEs' decisions.

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SMEs' Use Of Financial Statements For Decision Making: Evidence From Pakistan

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v34i2.10138 ◽

2018 ◽

Vol 34 (2) ◽

pp. 381-392

Author(s):

Shamim Akhtar ◽

Yanping Liu

Keyword(s):

Decision Making ◽

Principle Component Analysis ◽

Service Providers ◽

Small And Medium Enterprises ◽

Financial Statements ◽

Logit Analysis ◽

Key Factors ◽

Business Decisions ◽

Financial Decisions ◽

Medium Enterprises

Financial statements comprise of insightful statistics about likely risk and the return associations of many decisions and have significant role in firms’ success, particularly for SMEs. Thus, through a sample of 94 Pakistani small and medium enterprises (SMEs), this study inspects the influences that could have impact on firms’ practice of the financial statements in making significant financial decisions. Principle component analysis finds key factors which define use of financial statements containing; experience, knowledge and ability. Logit analysis then discloses that these variables have significant association with whether Pakistani SME owners use financial statements while making business decisions. Findings indicates that the owners of Pakistani SMEs practice financial statements in decision making rendering to their knowledge about financial statements, experience and finally their ability to interpret figures confined in financial statements. Outcomes should be valuable for SME owners, educators, and the service providers.

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PENGARUH CAR, LDR DAN ROA TERHADAP LABA PERUSAHAAN PERBANKAN TERDAFTAR DI BURSA EFEK INDONESIA

Journal of Business Economics ◽

10.35760/eb.2018.v23i1.1813 ◽

2018 ◽

Vol 23 (1) ◽

pp. 72-85

Author(s):

Lasminisih ◽

Emmy Indrayani

Keyword(s):

Decision Making ◽

Multiple Regression ◽

Stock Exchange ◽

Financial Statements ◽

Capital Adequacy ◽

Financial Statement ◽

Return On Assets ◽

Capital Adequacy Ratio ◽

A Company ◽

Future Plans

Company financial statement can be used to monitor the performance of a company. Financial statements are also used as a means for decision making so that the company can anticipate future plans. The purpose of this study was to find out the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Return on Assets (ROA) on profit changes percentage of Banking Companies. The number of sample companies used in this study was 27 Banks listed in the Indonesia Stock Exchange with observation periods from 2007 to 2008. The method used in this study was multiple regression. The results of this study have indicated that CAR, LDR, and ROA gave significant effects on changes in Banks profit so that Banking Companies performances can be measured. Keywords: CAR, LDR, ROA, Profit

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Impact of financial statements for financial decision-making

Open Science Journal ◽

10.23954/osj.v5i2.2260 ◽

2020 ◽

Vol 5 (2) ◽

Author(s):

Saddeq Abdulshakour

Keyword(s):

Decision Making ◽

Relative Weight ◽

Financial Statements ◽

Decision Makers ◽

Financial Statement ◽

Financial Decisions ◽

Financial Decision Making ◽

Vision 2030 ◽

Study Population ◽

Financial Decision

The study aimed to know the effects of analysis of financial statements on financial decisions, and the degree of benefit from them, and to identify what financial statements, what is its importance for the institutions within the framework of the Kingdom's Vision 2030 of ideas and trends, and to identify the contribution of financial statement analysis to financial decision-making. The study was based on the descriptive and analytical approach, and the study population consisted of all financial decision makers. The study was based on a simple random method (70) of financial decision makers. The study was based on the questionnaire and consisted of the following axes (financial statements in companies, financial decision-making, the effects of analysis of financial statements on financial decision-making). The study came out with a number of results, the most important of which are: There is approval by the respondents to all paragraphs of the first axis "financial statements in companies", with a relative weight of 82.8%. There is an agreement by the respondents on all paragraphs of the second axis "making financial decisions in companies", with a relative weight of 81.3%. There is strong approval by the respondents on all paragraphs of the third axis "the effects of analysis of financial statements on financial decision-making", with a relative weight of 86.4%. The financial statements are a key tool to know the financial position of the company, so they must be accurate and reliable before being published by management. The lack of credibility in the financial statements leads to mistrust in the company by investors, and does not give them the possibility to diagnose and make sound decisions. In light of the previous results, the study recommended the following: • Organizing several forums, conferences and forums to clarify the mechanism of preparing the financial statements and how to analyze them, and the need to raise awareness of financial decision makers about the importance of financial statements in the financial decision-making process.

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ANALISIS PENYAJIAN LAPORAN KEUANGAN BERDASARKAN PENERAPAN STANDAR AKUNTANSI KEUANGAN ENTITAS TANPA AKUNTABILITAS PUBLIK PADA PT. FORTUNA INTI ALAM

GOING CONCERN : JURNAL RISET AKUNTANSI ◽

10.32400/gc.12.01.17131.2017 ◽

2017 ◽

Vol 12 (01) ◽

Author(s):

Marddyanto Dwi Saputra ◽

Jullie J. Sondakh ◽

Treesje Runtu

Keyword(s):

Decision Making ◽

Cash Flow ◽

Descriptive Analysis ◽

Accounting Standards ◽

Financial Statements ◽

Financial Accounting ◽

Financial Statement ◽

Public Accountability ◽

Financial Situation ◽

Chartered Accountants

The financial statements in principle are the result of the accounting process used to communicate the financial situation to internal and external parties that are aimed at decision making. The importance of the financial statements, then the financial statement should be prepared carefully and without errors. Financial Accounting Standards generally are not in accordance with entities whose accountability is not as significant. Therefore, the Institute of Indonesia Chartered Accountants (IAI) has issued Financial Accounting Standards Entity Without Public Accountability (SAK ETAP) intended for entities that do not have significant public accountability and publish financial statements for general purposes for external users. This study aims to analyze the implementation of ETAP in the presentation of PT. Fortuna Inti Alam’s financial statement. The method used in this study is comparative descriptive analysis. Results of this research is based on the financial statements of 2016 show that PT. Fortuna Inti Alam has implemented ETAP but it is not fully complete yet. The Company has not presented Statement of Owner’s Equity, Cash Flow Statement, and Notes to Financial Statements. This research suggests that companies can prepare components of other financial statements in accordance with applicable standards.Keywords : Financial Statements, SAK ETAP.

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Role of Financial Statement in Investment Decision Making Process

Journal of Balkumari College ◽

10.3126/jbkc.v9i1.30094 ◽

2020 ◽

Vol 9 (1) ◽

pp. 105-108

Author(s):

Suraj Bhujel

Keyword(s):

Decision Making ◽

Investment Decision ◽

Financial Statements ◽

Vital Role ◽

Financial Statement ◽

Quality Information ◽

Decision Making Process ◽

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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Auditor style and common disclosure deficiencies : evidence from SEC comment letters

10.32469/10355/63609 ◽

2017 ◽

Author(s):

◽

Matthew Baugh

Keyword(s):

Decision Making ◽

Financial Statements ◽

Financial Statement ◽

Potential Hazard ◽

Net Benefit ◽

Auditor Tenure ◽

Policies And Procedures ◽

Prior Literature ◽

Comment Letters ◽

Decision Errors

Prior literature documents that auditor style increases financial statement comparability, implicitly making financial statements more useful to outsiders. Auditor style results from policies and procedures that centralize decision-making within the audit firm. A potential hazard of centralized decision-making is the propagation of decision errors throughout the entity. I predict, and find evidence to suggest, that auditor style is associated with a set of common disclosure deficiencies among clientele as measured by receipt of similar SEC comment letters. Clients also converge in both style and disclosure deficiencies as auditor tenure increases. Further, after changing auditors, clients appear to assume the style and disclosure deficiencies of the subsequent auditor. These results provide the first evidence that auditor style, while potentially a net benefit to users of the financial statements, has potential costs as well.

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The role of the notes to the financial statements in corporate decision-making

Corporate Ownership and Control ◽

10.22495/cocv15i4c1p1 ◽

2018 ◽

Vol 15 (4-1) ◽

pp. 138-148 ◽

Cited By ~ 1

Author(s):

Veronika Fenyves ◽

Zoltán Bács ◽

Zoltán Zéman ◽

Elvira Böcskei ◽

Tibor Tarnóczi

Keyword(s):

Decision Making ◽

Text Mining ◽

Financial Statements ◽

Primary Objective ◽

Financial Statement ◽

Primary Activity ◽

Informative Part ◽

Information Technology Services ◽

Technology Services

For the analyses, we used the notes to the financial statements of companies with Hungarian headquarters, which are regulated by the Accounting Act and which have information-technology services as their primary activity of the business. The primary objective of our research was to examine the extent to which the enterprises investigated fulfill their obligations determined by the Accounting Act to disclose all needed information in the general and informative parts of the notes to the financial statement. The analysis was performed using text mining, and the results were evaluated with non-parametric statistical methods. Based on the analysis, we can state that the investigated companies presented proportionally less information in the general part of the notes to the financial statements as compared to the informative part. However, even the highest frequency did not exceed 70%. Based on the χ2 test, we can state that the frequency of occurrence of the majority of information sought using text mining significantly differs by company type, and this difference mostly occurred amongst Ltds and Lps, in favor of Ltds. As a conclusion, it can be deduced that the investigated companies do fully not meet the legal requirements for the information provided in the notes to the financial statements. This incompleteness may cut down on the decision-making ability of the companies concerned.

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The Quality of Local Government Financial Statements and The Use of Financial Information in Decision Making

Journal of Accounting Auditing and Business ◽

10.24198/jaab.v3i1.25605 ◽

2020 ◽

Vol 3 (1) ◽

pp. 73

Author(s):

Raden Muhammad Rachmansyah Shadiqiawan ◽

Sri Mulyani

Keyword(s):

Decision Making ◽

Local Government ◽

Hypothesis Testing ◽

Local Governments ◽

Financial Statements ◽

Financial Information ◽

Financial Statement ◽

Government Decision ◽

Testing Data

Financial statements contain information that is very helpful for users in making decisions. This study examines whether there are differences in the use of financial statement information decision making between the local government that obtain unqualified and qualified opinion for their financial statements. This study used the Mann Whitney test for hypothesis testing. Data was collected through a survey using a questionnaire on five local governments in West Java.The results of this study indicate that there are no significant differences in the use of financial statement information for local government decision-making, both in local governments that obtain unqualified and qualified opinions for their financial statements. This study also found that the financial statements most often used as a basis for decision making in the two groups of local governments are budget realization statement.

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Miscommunication Of Uncertainties In Financial Statements: A Study Of Preparers And Users

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v3i1.2733 ◽

2011 ◽

Vol 3 (1) ◽

Author(s):

Kim Capriotti ◽

Bobby E. Waldrup

Keyword(s):

Decision Making ◽

Financial Statements ◽

Financial Statement ◽

Font Size ◽

Communication Mode ◽

Accounting Disclosures ◽

Factors Influencing ◽

Regional Bank ◽

Loan Officers ◽

Significant Factors

The focus of this study is management's communication of uncertainty (attested to by auditors) and the potential for miscommunication due to the communication mode used in accounting disclosures. Two hypotheses are addressed to determine if financial statement users differentiate among three levels of uncertainty (using SFAS No. 5 as a vehicle for study), and whether their judgments differ when numerical probabilities replace the prescribed verbal expressions in communicating these uncertainties. The participants for this study are drawn from commercial loan officers from a major regional bank. Results lend evidence that both the level of uncertainty and the mode of communication are significant factors influencing the level of risk revision in an uncertainty exercise.  Support is found that miscommunication may exist between the preparers and users of financial statements. However, support is not found that the “vagueness” of SFAS No. 5 verbal expressions of uncertainty is detrimental to users’ decision-making abilities.

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PENGARUH OBEDIENCE PRESSURE DAN SELF-EFFICACY TERHADAP AUDIT JUDGEMENT PADA AUDITOR PERWAKILAN BPKP PROVINSI SULAWESI UTARA

GOING CONCERN : JURNAL RISET AKUNTANSI ◽

10.32400/gc.13.02.19355.2018 ◽

2018 ◽

Vol 13 (02) ◽

Author(s):

Vriska Rumengan ◽

Jantje J. Tinangon ◽

Sonny Pangerapan

Keyword(s):

Decision Making ◽

Self Efficacy ◽

Random Sampling ◽

Simple Random Sampling ◽

Financial Statements ◽

Financial Statement ◽

Sampling Techniques ◽

North Sulawesi ◽

The Government

BPKP is one of the official internal government auditors, whose duties and functions is to supervised financial and development activities. One of its task is to audit. When conduction an audit, auditors are required to be able to give consideration as to the supervision of the government financial statements. This is where the role of audit judgement comes to life. Audit judgement is the personal consideration of auditors in decision making whether or not a financial statement is reasonable. Audit judgement is effected by several factors, that is Obedience Pressure and Self-efficiency. This research is aimed to find out the impacts of obedience pressure and self efficiency on audit judgement. The sample of this research is 53 auditors employed at the Offices of The Representatives of BPKP, North Sulawesi, in Manado. The samples were chosen randomly using simple random sampling techniques. The data were analyzed using multiple regression analysis and the data were examined using SPSS 21 (Statistical Product and Service Solution). The result of this research showed that partially, obedience pressure significantly influence the audit judgement negatively; while self-efficiency significantly influence audit judgement positively. Keywords: Audit Judgement, Obedience Pressure, Self-Efficacy.

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