IMPACT OF FINANCIAL REPORTING ON INVESTMENT DECISIONS OF MANUFACTURING ENTERPRISES IN NIGERIA

ABSTRACT This study assessed the impact of financial reporting on investment decisions of Manufacturing Enterprises in Nigeria. Questionnaire was used for the study. Three research questions were formulated for the study. The study population comprises of all manufacturing enterprises in Nigeria. However, twenty (20) respondents were sample for this study using purposive random sampling technique selected. Simple percentage was used in calculating the responses of the respondents on demographic data and descriptive statistics using mean and standard deviation to determine the research questions. Based on the findings of this study, it was revealed that the findings demonstrate that financial reporting quality significantly impacts the profitability and financial performance of these enterprises. Respondents generally agreed that transparent, accurate, and compliant financial reporting contributes to better financial outcomes, improved investor confidence, and sound economic decision-making. However, issues such as financial fraud, manipulation, and the limited effectiveness of reforms and internal control systems present challenges that undermine the positive effects of financial reporting on performance. Based on the study some recommendations were made; Manufacturing enterprises should strengthen internal control systems to prevent fraud and financial manipulation, ensuring the accuracy and reliability of financial reports. Furthermore, businesses should improve regulatory reforms and enforcement by implementing stringent measures to eliminate financial scandals and ensure compliance with accounting and auditing standards. Finally, accountants’ regulatory bodies should enhance financial reporting transparency to ensure that financial statements are clear and understandable for all stakeholders, particularly equity holders.