"Impact of Financial Statement Information on Investment Decisions of Individual Investors in Mumbai City"

Abstract: Investment activities have become increasingly important for individuals seeking financial growth and long-term wealth creation. While making investment choices, investors rely on various sources of information, among which financial statements remain one of the most reliable. These statements provide insights into a company's profitability, liquidity, operational efficiency, and overall financial condition. The present study investigates how information contained in financial statements affects the investment behaviour of individual investors in Mumbai. It explores the extent to which investors consider accounting information such as earnings, dividends, revenue growth, cash flows, and financial ratios while selecting securities and making buy, hold, or sell decisions. Primary data were collected from individual investors through a structured questionnaire. Statistical tools such as descriptive analysis and correlation techniques were used to evaluate the responses. The results reveal that a majority of investors consider financial statement information before making investment decisions, particularly indicators related to profitability and earnings performance. The study also highlights that investors with a better understanding of accounting information tend to make more informed investment choices. The findings contribute to a broader understanding of the role of financial reporting in shaping investor behaviour and may be useful for investors, financial educators, and market participants.