Abstract:

This study intended to investigate the role of financial statements in investment decision making.
The study questions were to examine how financials aid investors in decision making, evaluate
the performance of a company for investment decision making, and appraise the fundamental use
of financial statement information. The approach was to work with the TPA and general public
to achieve the set objectives. In summary, the approach and research methodologies involved;
desk study to review current literatures; pilot study and the actual field research study. Data
analysis was conducted on the basis of data collected. Explanatory analysis using Ms Excel, and
SPSS were used. The findings show that financials are critical in investment decision making.
Investors are confident with TPA financials. Majority of the respondents appeared to be
knowledgeable with financial variables specifically, the gearing ratios, liquidity ratios and
profitability ratios. TPA faces government interventions in financial reporting, and qualified
audit reports. Conclusion was based on findings that investor need to get proper interpretations
of financial reports, making consultations and get other none financial information in investment
decision making. The study recommends; both females and males must be included in any study,
need to use informed sample, encourage usage of financials in investment decision making, need
for TPA to fully apply the IFRS principles in the preparation of its financials and investors to
seek consultancy services in the use of financial reports to make investment decisions.