Financial Statement Analysis and its Impact on Investment Decisions in Ghana

Abstract

The objective of the study is to investigate the influence of financial statement analysis on investment decisions among investors in the Ghana Stock Exchange Market. Quantitative research design was employed where data was collected through structured questionnaires issued to both individual and institutional investors on the Ghana Stock Exchange Market. In all a total of ninety-seven (97) valid responses were analyzed using descriptive and inferential statistical tools, including correlation and regression analysis. The findings of the study revealed a strong and statistically significant relationship between financial statement analysis and the quality of investment decisions of investors in the Ghana Stock Exchange Market, particularly emphasizing the importance of profitability and liquidity indicators.