Financial ratio analysis: decision usefulness for potential shareholders’ benefit
The certainty of the reliance on the use of financial ratio analysis in making investment decisions by potential investors still remained a mystery. This has to do with the choice of ratios to select when making investment decisions. Many shareholders in Nigeria are uneducated or illiterate, and due...
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| Format: | Article |
| Language: | English |
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Institute for Management and Business Research (IMBRe), Universiti Utara Malaysia
2017
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| Online Access: | https://repo.uum.edu.my/id/eprint/25763/1/JBMA%207%202%202017%2051%2059.pdf |
| _version_ | 1825805350902693888 |
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| author | Kabir, Musa Usman Aripin, Norhani Al-Dhamari, Redhwan Ahmed Ali |
| author_facet | Kabir, Musa Usman Aripin, Norhani Al-Dhamari, Redhwan Ahmed Ali |
| author_sort | Kabir, Musa Usman |
| collection | UUM |
| description | The certainty of the reliance on the use of financial ratio analysis in making investment decisions by potential investors still remained a mystery. This has to do with the choice of ratios to select when making investment decisions. Many shareholders in Nigeria are uneducated or illiterate, and due to their ignorance, they cannot use ratio analysis in evaluating firms for investment decisions. Thus, this paper explores the concept of financial ratio analysis in terms of the decision usefulness of financial ratios. The paper suggests that the relevant financial information needed for the purposes of making investment decision can be sourced through the use of financial ratio analysis. Therefore, management must ensure that disclosure of comprehensive financial ratios form part of financial statement prepared for the overall appraisal of firms. |
| first_indexed | 2024-07-04T06:30:53Z |
| format | Article |
| id | uum-25763 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:30:53Z |
| publishDate | 2017 |
| publisher | Institute for Management and Business Research (IMBRe), Universiti Utara Malaysia |
| record_format | eprints |
| spelling | uum-257632019-03-13T07:17:22Z https://repo.uum.edu.my/id/eprint/25763/ Financial ratio analysis: decision usefulness for potential shareholders’ benefit Kabir, Musa Usman Aripin, Norhani Al-Dhamari, Redhwan Ahmed Ali HG Finance The certainty of the reliance on the use of financial ratio analysis in making investment decisions by potential investors still remained a mystery. This has to do with the choice of ratios to select when making investment decisions. Many shareholders in Nigeria are uneducated or illiterate, and due to their ignorance, they cannot use ratio analysis in evaluating firms for investment decisions. Thus, this paper explores the concept of financial ratio analysis in terms of the decision usefulness of financial ratios. The paper suggests that the relevant financial information needed for the purposes of making investment decision can be sourced through the use of financial ratio analysis. Therefore, management must ensure that disclosure of comprehensive financial ratios form part of financial statement prepared for the overall appraisal of firms. Institute for Management and Business Research (IMBRe), Universiti Utara Malaysia 2017 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25763/1/JBMA%207%202%202017%2051%2059.pdf Kabir, Musa Usman and Aripin, Norhani and Al-Dhamari, Redhwan Ahmed Ali (2017) Financial ratio analysis: decision usefulness for potential shareholders’ benefit. Journal of Business Management and Accounting (JBMA), 7 (2). pp. 51-59. ISSN 2231-9298 http://www.imbre.uum.edu.my/index.php/12-publications/234-financial-ratio-analysis-decision-usefulness-for-potential-shareholders-benefit |
| spellingShingle | HG Finance Kabir, Musa Usman Aripin, Norhani Al-Dhamari, Redhwan Ahmed Ali Financial ratio analysis: decision usefulness for potential shareholders’ benefit |
| title | Financial ratio analysis: decision usefulness for potential shareholders’ benefit |
| title_full | Financial ratio analysis: decision usefulness for potential shareholders’ benefit |
| title_fullStr | Financial ratio analysis: decision usefulness for potential shareholders’ benefit |
| title_full_unstemmed | Financial ratio analysis: decision usefulness for potential shareholders’ benefit |
| title_short | Financial ratio analysis: decision usefulness for potential shareholders’ benefit |
| title_sort | financial ratio analysis decision usefulness for potential shareholders benefit |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/25763/1/JBMA%207%202%202017%2051%2059.pdf |
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