[Discussion of An Empirical Test of the Relevance of Accounting Information for Investment Decisions]: A Reply

1971 ◽  
Vol 9 ◽  
pp. 45
Author(s):  
Alvin Martin
Keyword(s):  
Empirical Test ◽  
Accounting Information ◽  
Investment Decisions

scholarly journals ASSESSMENT OF THE ROLE OF ACCOUNTING INFORMATION ON EFFECTIVE INVESTMENT DECISION - THE CASE OF BANQUE POPULAIRE DU RWANDA ATLASMARA

2021 ◽  
Vol 6 (3) ◽  
Author(s):  
James Hodari
Keyword(s):  
Decision Making ◽  
Data Collection ◽  
Investment Decision ◽  
Accounting Information ◽  
Investment Decisions ◽  
Target Population ◽  
Staff Members ◽  
Investment Decision Making ◽  
Secondary Methods

The purpose of this study is to assess the role of accounting information on effective investment decisions at Banque Populaire du Rwanda Atlasmara. The target population was 50 staff members. The study used a primary method that involved questionnaires. Secondary methods of data collection involved a desk review of relevant materials. Data collection was then analyzed by using SPSS software. The study indicated a significant correlation between accounting information and investment decisions and all rely on information for an investment decision. It was seen from the analysis of responses, 83% argued always use accounting information for investment. It was revealed that the quality of accounting information in terms of its accuracy, adequacy, reliability, and mode of disclosure is a pertinent element of efficiency of investment decision making. The study recommends that commercial banks should use accounting always to increase the accuracy of their investment decision-making. The study recommends that Banque Populaire du Rwanda should consult the accounting information before making investment decisions and all interested parties to accounting information should use necessary financial ratios analysis for an investment decision. The study concludes that there is a significant correlation between accounting information and investment decision. JEL: M10; M41; R42 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0845/a.php" alt="Hit counter" /></p>

scholarly journals Measuring the Quality of the Interim Financial Reports Using the Qualitative Characteristics of the Accounting Information and its Effect on the Investment Decisions According to the “IAS 34”

2017 ◽  
Vol 9 (5) ◽  
pp. 159
Author(s):  
Hasan Mahmoud AL-Shatnawi
Keyword(s):  
Investment Decision ◽  
Linear Regression Analysis ◽  
Accounting Information ◽  
Investment Decisions ◽  
Point Of View ◽  
Financial Reports ◽  
The One ◽  
Level Of Significance ◽  
Qualitative Characteristics

This study aimed at measuring the quality of the interim financial reports using the quality characteristics of the accounting information and its effect on the investment decisions according to IAS 34 from the point of view of a category of the financial information users working in the brokerage companies. To achieve the objectives of the study, a questionnaire was designed that contains three constructs related to the primary qualitative characteristics, the enhancing qualitative characteristics, and quality of the interim financial reports. The questionnaire was distributed to a sample consisting of 72 individuals. Descriptive statistics were used to describe the study sample such as the frequencies, arithmetic mean, and standard deviation. In addition, the one-sample t-test and simple linear regression analysis were employed to test the study hypotheses at the 0.05 level of significance. Of the main results which the study reached to are that (i) there is effect of the qualitative characteristics of both the primary and enhancing aspects on the quality of the interim financial reports, and (ii) there is effect of the interim financial reports on the investment decision taking. The study provided a number of recommendations, most important of which is directing the prepares of the interim financial reports to pay attention to providing the qualitative characteristics for the accounting information in the interim financial reports for their positive effect on the quality of these reports to help the decision takers in predicting the economical events and building the future plans.

Factors That Influence Investment Decision Making Among Potential Individual Investors in Malaysia

2019 ◽  
Vol 5 (1) ◽  
pp. 9
Author(s):  
Atikah Zulaikha Ahmad Zaidi ◽  
Nor Suziwana Hj Tahir
Keyword(s):  
Decision Making ◽  
Information Structure ◽  
Investment Decision ◽  
Accounting Information ◽  
Investment Decisions ◽  
Individual Investors ◽  
Market Outcomes ◽  
Decision Tools ◽  
Investment Decision Making ◽  
Behavioural Factors

Individual investments behaviour is concerned with choices about purchases of small amounts of securities for his or her own account. Decision tools often support investment decisions. It is assumed that information structure and the factors in the market systematically influence individuals’ investment decisions as well as market outcomes. Decision tools often support investment decisions. It is assumed that information structure and the factors in the market systematically influence individuals’ investment decisions as well as market outcomes. Investor market behaviour derives from psychological principles of decision making to explain why people buy or sell stocks. These factors will focus upon how investors interpret and act on information to make investment decisions. The purpose of the study was to identify the factors that influence investment decision making among potential individual investors in Malaysia. Three behavioural factors might influence investment decision making which are accounting-information, firm-image coincidence and personal-financial-needs. A set of questionnaire was distributed to 384 potential investors in Malaysia specifically in housing area of Klang Valley as population of this study. Based on the findings, it showed that there is positive relationship between accounting-information, firm-image-coincidence and personal-financial-needs in investment decision making. Hence, between these three behavioural factors, accounting-information, firm-image coincidence and personal-financial-needs, the main influential factor is accounting-information. This study also proposed a future research for investment decision making and give implications to the potential investors, community, organization, policy makers and investment practitioners.

Real Effects of Tax Uncertainty: Evidence from Firm Capital Investments

2021 ◽  
Author(s):  
Martin Jacob ◽  
Kelly Wentland ◽  
Scott A. Wentland
Keyword(s):  
Policy Change ◽  
Accounting Information ◽  
Investment Decisions ◽  
Underlying Mechanism ◽  
Capital Investments ◽  
Growth Opportunities ◽  
Public Accounting ◽  
Real Effects ◽  
Hurdle Rate ◽  
Tax Uncertainty

This paper examines whether tax uncertainty can alter investment decisions, focusing primarily on the timing of large capital investments. Empirically, we exploit the staggered implementation of Schedule UTP, a discrete policy change expected to increase tax uncertainty, finding that, on average, firms responded by delaying large capital investments. This effect is stronger among firms at which the policy treatment is particularly germane, that is, for firms with more material UTBs or with low-to-moderate quality public accounting information. We also test the underlying mechanism, finding that managers buffer against higher tax uncertainty with cheaper sources of financing (cash) and that the investment effect is concentrated among financially constrained firms. The results show that Schedule UTP also reduces the sensitivity of investment to growth opportunities (investment-Q sensitivity) in line with a higher hurdle rate for firms facing higher tax uncertainty. This paper was accepted by Brian Bushee, accounting.

scholarly journals The effects of accounting knowledge, entrepreneurial traits, and subjective norms on the use of accounting information in investment decision making (case study on MSME actors in Gunungkidul Regency)

2020 ◽  
Vol 2 (2) ◽  
pp. 295
Author(s):  
Firdha Rahmiyanti ◽  
Reza Adellya Pratiwi ◽  
Heny Yuningrum ◽  
Muyassarah Muyassarah
Keyword(s):  
Decision Making ◽  
Quantitative Research ◽  
Investment Decision ◽  
Accounting Information ◽  
Investment Decisions ◽  
Subjective Norms ◽  
Future Research ◽  
Investment Decision Making ◽  
Independent Variable

<p class="IABSSS"><strong>Purpose</strong> - The purpose of this study is to determine the effects of accounting knowledge, entrepreneurial traits, and subjective norms on the use of accounting information on making investment decisions of MSME actors in Gunungkidul Regency.</p><p class="IABSSS"><strong>Method </strong>- This study uses quantitative research methodology by purposive sampling. The gathered data in this study were processed using the SPSS program. This study was carried out on 20 February to 20 March 2020. The population in this study was businessmen of MSMEs in Gunungkidul Regency who had used accounting documentation. The research took 60 respondents as a sample of the study.  </p><p class="IABSSS"><strong>Result</strong> - This study resulted that the variables of accounting knowledge and entrepreneurial traits have a positive and significant effect on the use of accounting information in making investment decisions of MSME actors in Gunungkidul Regency; While the subjective norms variable does not have a positive and significant effect on the use of accounting information in making investment decisions of MSME actors in the Gunungkidul Regency.</p><p class="IABSSS"><strong>Implication</strong> - Future research can expand the object of research in several other regencies and can add other research variables.</p><strong>Originality</strong> - The researchers added an independent variable that is subjective norms and entrepreneurial traits, whereas the previous researchers only used accounting knowledge as the independent variable.

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