FINANCIAL REPORTING ANALYSIS AND INVESTMENT DECISION: EVIDENCE FROM SELECTED CORPORATE FIRMS IN NIGERIA

This study examined the extent financial reporting analysis affected investment decision-making on industrial goods firms in Nigeria, using firm profitability, and firm liquidity and as the independent variables while firm share capital was used as dependent variable (investment decision). Ex Post Facto research design was adopted. The study covered eleven years (2013-2023) annual accounts of the firms a sampled of ten industrial goods firms were used from a population of twelve firms. Data were analyzed with descriptive statistics and the hypotheses were tested using regression analysis via E-view 9.0. The study revealed that firm profitability and firm liquidity have not significantly affect investment decision of industrial goods firms in Nigeria. The study therefore concluded that financial report analysis has a partial effect on investment decision; hence some portions of the reports are not significant. based on the findings, the study recommended among others that as the firm profitability shows positive and insignificant effect on investment decision this study, therefore, recommended that banks should always thrive on being profitable as this induces subscription to their shares which in turn boost their capital base.