国際会計研究ジャーナル

概要

FINANCIAL STATEMENT ANALYSISA TOOL FOR INVESTMENT DECISION MAKING IN THE GAMBIA: CASE OF TRUST BANK GAMBIA LIMITED

Saikou Conteh

This study intended to investigate financial statements analysis and investment decision making in The Gambia. The study questions were to examine how financial statement analysis aid potential investors in investment decision making, evaluate the performance of a company for investment decision making, and appraise the fundamental use of financial statement analysis information. The approach was to work with potential investors, big bank depositors and shareholders to achieve the set objectives. The paper used accounting ratios and financial report analysis, namely, liquidity ratio, efficiency ratio and profitability ratios, which might affect the financial performance of the firm. In summary, the approach and research methodologies involved, desk study to review current literatures, and the actual field research study. Data analysis was conducted base on data collected. The explainatory analysis was used. The findings show that financial statement analysis is critical in investment decision making. The respondents appeared to be knowledgeable with financial variables specifically, the liquidity ratios and profitability ratios. The government intervention in financial reports, and unqualified audit reports help vitally in having an accurate opinion. Conclusion was based on findings that investor needs to get proper interpretations of financial statement analysis reports, making consultations and get other none financial information in investment decision making. The findings of this study show that 80% of the respondent was in favor that financial statement analysis is very essential in making an investment decision. This is true.