The role of financial statement in investment decision making

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RESEARCH METHODOLOGY

INTRODUCTION
This chapter deals exclusively with the methods, procedures, and systems which the researcher employed in the collection of the necessary data and information for the research work.
Every stage of research process focuses on some kind of sampling. This is so because it becomes apparently impossible to include the entire variables, which might provide useful information or to use all the data gathered in the final report.
RESEARCH DESIGN
This study was basically a survey research and therefore required the use of survey method of investigation. In this survey research, a questionnaire is designed to gather information relevant to this project topic. The questionnaire has option Yes and No.
AREA OF THE STUDY
In this research work, the researcher used first Bank of Nigeria plc. Anyigba branch Kogi State. A government owned and profit making organization as her case study.
POPULATION OF THE STUDY
The population of the study comprises the key staff and functional heads of the branch of the bank selected for the study that is first bank of Nigeria plc. Anyigba branch, kogi state. There were a total of 70 personnel’s in the various departments, whose views and knowledge can derive the study.

SAMPLE SIZE AND SAMPLE TECHNIGUE

It is important to note that it is not possible to study the entire population as a result of time constraint and limited resources available for effective handling of the study. Therefore, only a portion of the population is studied. The opinions and views sampled (A part of population which the study is focused) from the staff of the organization. To ensure the determination of accurate sample size, the statistical formula derived by Taro Yamane (1964) was employed.
The formula states thus:
n = N/1+ N(e)2
Where n = sample size
N = population of the study which is 70
e = margin of error and in this case, e = 5% (chosen by the researcher)
1 = constant
Therefore;
n = N/1+N(e)2

INSTRUMENTS FOR DATA COLLECTION

The researcher made use of the following instrument in obtaining the needed information;

Questionnaire
Personal interview
Surveys
Library research

Through the help of these instruments, it was possible for the research to get the necessary information from the respondents.

SOURCES OF DATA COLLECTION
This refers to where the information originates. In carrying out this study, the researcher made uses of both primary and secondary sources of data.
1 PRIMARY SOURCES: primary data are original or first nature. The advantage of this type of data is that the exact information wanted is obtained. The primary sources of data were obtained from oral interview with top management staff questionnaire were also drafted and administered to enable the researcher obtain wide range of information which were not possible using oral interview due to lack of time and opportunity.

SECONDARY SOURCES:
the secondary source of data involves information gotten from already conducted research work that relates to the study. This includes textbooks, journals, magazines, internet language to avoid ambiguity in understanding of the questions. The reliability of the instrument is based on the accounting theorist.

METHODS OF DATA COLLECTION
This is the technique used by the researcher to obtain data for analysis. The researcher used questionnaire, interview and personal observation. Formulated questions relevant to the subject matter were used and printed with instructions to guide the respondents and enable them express their opinion. The personal observation was made by the researcher as she listened to the respondents thereby drawing conclusion.

READ Theoretical literature on the effectiveness of fiscal policy

METHOD OF DATA PRESENTATION AND ANALYSIS
The tools used in analyzing the data include; tables, frequency and simple percentage method and chi-square method. These tools made it possible for the researcher to make proper analysis of the data which were collected during the course of carrying out the study. The methods are as follows;
Percentages: The simple percentage methods were used for the analysis of the result obtained from the questionnaire. The formula is given below as:
X x 100 = X%
∑X 1
Where;
X = values of subgroup
∑X = total value (sum) of sub group
X% = percentage of sub group in total sum
Chi-square (X²); chi-square method is used to test the null hypothesis formulated in chapter one. It is used to compare differences between observed and expected theoretical frequencies.
The formula is given as;
X² = ∑ (F0 –Fe)²
Where;
X² = chi-square
= summation of value F0 = observed frequency Fe = expected frequency Once you have computed your X2, you then state the decision.
Decision Rule: if chi-square value (X2) is greater than the table value at the appropriate level of significance and degrees of freedom, the null hypothesis will be rejected and alternative accepted but where it is lesser than the value read out of chi-square table, then the null hypothesis is accepted and alternative rejected.

VALIDITY OF INSTRUMENT USED
The validity of the instruments used in this research work where highly controlled by the researcher. There is clear information as how to complete the questionnaire by the respondents and the researcher personally administered and collected them to ensure high rate of turn.

RELIABILITY OF THE INSTRUMENT USED
The truthfulness of the instrument used in collecting data cannot be defined. This is because analysis relied on future researchers. Reliability of instrument can be based on the statistical roll employed as used for data analysis. Questionnaires were tested by an accountant who makes it reliable and they assist the researcher in achieving the aims and objective of the research questions and hypothesis which are also to be tested.

Table of content
CHAPTER ONE Introduction
1.1 Historical background
1.2 Statement of the problem
1.3 Objective of the study
1.4 Research hypotheses
1.5 Research questions
1.6 Significance of the study
1.7 Scope of the study
1.8 Limitation of the study
CHAPTER TWO: LITERATURE REVIEW
Introduction
2.1 Features of financial statement
2.2 Functions of financial statement
2.3 Objectives of financial statement
2.4 Analysis of financial statement
2.5 Users of financial statement
2.6 Attributes of an ideal financial statement
2.7 Types of financial statement
2.8 Definition and nature of investment decision
2.9 Importance of investment decision
2.12 The role of financial statement in investment decision making
2.13 Types of ratios and their uses
Reference
CHAPTER THREE RESEARCH METHODOLOGY
3.0 Introduction
3.1 Research design
3.2 Area of the study
3.3 Population of the study
3.4 Sample size and sample technique
3.5 Instruments for data collection
3.6 Sources of data collection
3.7 Methods of data collection
3.8 Method of data presentation and analysis
3.9 Validity of instrument used
3.10 Reliability of the instrument used
Reference
CHAPTER FOUR DATA PRESENTATION AND ANALYSIS
4.1 Data presentation
4.2 Data analysis
4.3 Test of hypotheses
CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendations
Bibliography
Appendixes