ABSTRACT

Corporate organization owes a duty to fully disclose matters concerning their operation so as to naid investors on making investment decisions because investment decisions makers rely on information obtained from financial statements to predict future rates of return. Without the financial statement, there will be a problem of how to determine the profit of a company, and evaluation of performance of a company. The general objective is to ascertain the role of a financial statement in investment decision making. The study will be based on survey and questionnaire will be used to gather information the sample size is 26 using Cochran of 1963 for  unknown population formula. The methods used in analyzing this study are simple percentage and chi-square. We discovered from the test of hypotheses that financial statement is relied upon in investment decision making and financial statements are useful for forecasting company’s performance. Conclusion was drawn based on the findings that financial statement plays a vital role in investment decision making and recommends that no investment decisions should be taken without the considerations of a company’s financial statements.