Decision Usefulness and Financial Reporting: The General Public Perspective
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2017, Vol 7, Issue 4
Abstract
The study examines how the quality of financial reports aid accounting information users (the general public) to make informed decisions. To achieve this objective, the current Staff and Higher National Diploma Students of Accountancy Department, Rufus Giwa Polytechnic Owo, Ondo State, Nigeria was used as our respondents. Data were gathered using the questionnaire. A total of 75 sets of a questionnaire were administered to the respondents with 57 of them retrieved, thus, representing a 76% response rate. The Ordinary Least Square (OLS) regression technique was employed to analyze the data gathered. From the empirical results, reliability, understandability, comparability, timeliness and verifiability of financial reports with t-statistic values of (1.309), (-0.792), (-0.357) and (-0.681) respectively were found to be insignificant for decision making by the general public. While relevance and faithful representation with t-statistic values of (2.398) and (2.004) respectively were found to be positive and statically significant for decision making by the general public. The paper therefore concludes that most of the respondents do not rely on the financial reports provided by companies as a result of not providing their information needs as stakeholders. Therefore, it was recommended that for financial reports to be more meaningful and of immense benefit to the general public there is need to make information in financial reports more reliable, understandable, comparable, timely and verifiable.
Authors and Affiliations
Kazeem Akanfe Soyinka, Michael Omotayo Fagbayimu, Emmanuel Adegoroye, John Oladipo Ogunmola
Keywords
Related Articles
- EP ID EP287513
- DOI -
- Views 110
- Downloads 0
Environmental Reporting Practices of Listed Companies in Bangladesh
Now-a-days environment has become a very crucial issue not only for personal life but also for business life and hence, environmental movement and environmental reporting practices by different organization throughout th...
Does Liquidity and Solvency Affect Banks Profitability? Evidence from Listed Banks in Jordan
This paper examines the impact of liquidity and solvency on banks profitability. All banks listed in Amman exchange were selected (15 banks) for the period 2012- 2014. To measure the liquidity the quick ratio was calcula...
The Relationship between Mobbing the Academics are exposed to and the Organizational Commitment: A Study in the public and private universities
The aim of this study is to determine the level of impact of mobbing academics are subjected to, on organizational commitment. It was attempted to implement the research on academics working in the public and private uni...
TQM Implementation for Effective Project Management
Anyone who has ever been involved in (managing) a project is most probably convinced of a complex correlation between project constraints, and a constant need to compromise. There lies the paradox of the conventional wis...
Social Networks as a Source of New Value
In recent years, new business solutions have appeared based on creative ideas and the ability to use multi-channel communication with clients. Social networks are now not only a necessary complement to communication, but...