Impact of financial statements for financial decision-making

Saddeq Abdulshakour

doi:10.23954/osj.v5i2.2260

Abstract

The study aimed to know the effects of analysis of financial statements on financial decisions, and the degree of benefit from them, and to identify what financial statements, what is its importance for the institutions within the framework of the Kingdom's Vision 2030 of ideas and trends, and to identify the contribution of financial statement analysis to financial decision-making. The study was based on the descriptive and analytical approach, and the study population consisted of all financial decision makers. The study was based on a simple random method (70) of financial decision makers. The study was based on the questionnaire and consisted of the following axes (financial statements in companies, financial decision-making, the effects of analysis of financial statements on financial decision-making). The study came out with a number of results, the most important of which are: There is approval by the respondents to all paragraphs of the first axis "financial statements in companies", with a relative weight of 82.8%. There is an agreement by the respondents on all paragraphs of the second axis "making financial decisions in companies", with a relative weight of 81.3%. There is strong approval by the respondents on all paragraphs of the third axis "the effects of analysis of financial statements on financial decision-making", with a relative weight of 86.4%. The financial statements are a key tool to know the financial position of the company, so they must be accurate and reliable before being published by management. The lack of credibility in the financial statements leads to mistrust in the company by investors, and does not give them the possibility to diagnose and make sound decisions. In light of the previous results, the study recommended the following: • Organizing several forums, conferences and forums to clarify the mechanism of preparing the financial statements and how to analyze them, and the need to raise awareness of financial decision makers about the importance of financial statements in the financial decision-making process.

Highlights

At present, the Foundation is one of the most important units for the establishment and formation of any economy, in a way that affects and is affected by the frustration in which it settles, and cannot live away from the changes and developments that are accelerating daily. whether direct or indirect impact on the institution and its growth, these changes have contributedOpen Science Journal – June 2020Open Science JournalResearch Article significantly to the emergence of economic concepts for the administrative and financial aspects
The financial statements are a key tool to know the financial position of the company, so be sure of their accuracy and credibility before they are published by management
The lack of credibility in the financial statements leads to mistrust in the company by investors, and does not give them the possibility to diagnose and make sound decisions

Summary

Introduction

The Foundation is one of the most important units for the establishment and formation of any economy, in a way that affects and is affected by the frustration in which it settles, and cannot live away from the changes and developments that are accelerating daily. whether direct or indirect impact on the institution and its growth, these changes have contributedOpen Science Journal – June 2020Open Science JournalResearch Article significantly to the emergence of economic concepts for the administrative and financial aspects. Among competitors based on scientific methods used in the decision-making process This varies depending on the size of the institution and its activities and functions (Khawla, 2016). In the field of business environment, many problems have arisen for institutions, including accounting institutions, which is mainly due to the different accounting standards between countries, which led to the inevitability of increasing interest in accounting information, which is the results of the accounting system This is the basis for any decision-making process, which is built to compare this information in many institutions at different stages of time, and this required the development of accounting function in standard methods, as well as the disclosure of accounting information, especially in relation to the financial outputs of institutions (Zager, 2006)

Objectives

Methods

Findings

Conclusion