FINANCIAL REPORTING AND STRATEGIC DECISION MAKING OF FIVE QUOTED FIRMS IN RIVERS STATE

This study focuses on financial reporting and corporate strategic decision making. In the bid to achieve this, nine research questions were posed and nine research hypotheses were formulated. Review of related literature was done. Descriptive statistics research was used. The population of the study were all the administrative officers and finance staff of five quoted firms in Port Harcourt, while the sample size comprised of ninety (90) administrative officers and finance staff of the selected firms in Port Harcourt who were randomly selected. The instrument used for collection of data was the questionnaire, this was designed in modified four likert rating scales. The research questions were analyzed on tables using simple percentage while chi-square statistical tool was used in testing the hypothesis. The result of the findings were shown as follows: there is a significant relationship between cash flows statement and firm’s profit planning decisions making, there is a significant relationship between cash flow statement and firm’s merger and acquisition decisions making, there is a significant relationship between income statement and firm’s merger and acquisition decisions making, there is a significant relationship between statement of financial position and firm’s investment decisions making, there is a significant relationship between statement of financial position and firm’s profit planning decisions making, there is a significant relationship between statement of financial position and firm’s merger and acquisition decisions making. The study concluded that financial reporting enhances 5 firm’s corporate strategic decision making. Recommendations made included amongst the following: accurate records shod be kept and report be rendered annually, also, there should be proper audit by external auditors, furthermore all accounting procedures and rules should be complied with as to avoid some of the human errors of irregularities that collapses firms etc.