The usefulness of auditors report in investment decisions: a study on user perception amongst institutional investors in Kenya
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Date
1993-07Author
Njoroge, Mary W
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
This study sought to identify whether private institutional
investors in Kenya perceive auditor's report to be of
importance in making investment decision. This need arose
partly from the fact that the Companies Act requires all
registered companies to be audited annually. In addition when
making primary issues companies are required to present
audited accounts as part of their prospectuses. The Act
therefore presumes that the auditors report is useful which
presumption is the subject of study in this paper.
In order to achieve the objectives of the study primary data
was collected from a sample of 30 institutional investors.
Descriptive statistical methods and chi-square test of
association were used to analyze the data.
The results of the analysis indicate that institutional
investors perceive the auditors report to have utility in
investment decision making and further that they actually
utilise it in decision making. The study also found out that
the auditors report can be improved by additional information
being incorporated. This information especially touch on the
integrity of the company's managers and the status of
internal controls employed to safeguard the assets of the
company.
Citation
Master of Business and Administration, University of Nairobi, 1993Publisher
University of Nairobi. Faculty of Commerce