A Dissertation Submitted in Partial/Fulfilment of the Requirements for Award of a
Master of Business Administration of Mzumbe University
This study intended to investigate the role of financial statements in investment decision
making. The study questions were to examine how financials aid investors in decision
making, evaluate the performance of a company for investment decision making, and
appraise the fundamental use of financial statement information.
The approach was to work with the TPA and general public to achieve the set
objectives. In summary, the approach and research methodologies involved; desk study
to review current literatures; pilot study and the actual field research study.
Data analysis was conducted on the basis of data collected. Explanatory analysis using
Ms Excel, and SPSS were used. The findings show that financials are critical in
investment decision making. Investors are confident with TPA financials. Majority of
the respondents appeared to be knowledgeable with financial variables specifically, the
gearing ratios, liquidity ratios and profitability ratios.
TPA faces government interventions in financial reporting, and qualified audit reports.
Conclusion was based on findings that investor need to get proper interpretations of
financial reports, making consultations and get other none financial information in
investment decision making. The study recommends; both females and males must be
included in any study, need to use informed sample, encourage usage of financials in
investment decision making, need for TPA to fully apply the IFRS principles in the
preparation of its financials and investors to seek consultancy services in the use of
financial reports to make investment decisions.