EFFECT OF INFORMATION OF FINANCIAL STATEMENTS ON INVESTMENT DECISIONS: A STUDY IN VIETNAM

This study investigates the effect of information of financial statements on shareholders' investment decisions. It is necessary for investors as they decide to invest in listed firms on the Vietnamese Stock Exchanges. Information contents of financial statements affect shareholders' investment decisions. In order to examine the relationship between the information contents of financial statements and shareholders' investment decisions, the study used key information of financial statements such as profitability, dividend per share, earnings per share, leverage, and liquidity to investigate change in number of shares. The data of the study were obtained from the published annual financial statements of listed firms, thereby regression model was applied to establish the relationship between variables. The results indicate that the contents of published accounts significantly influence shareholders' investment decisions, particularly, profitability, dividend per share, earnings per share and liquidity affected the number of shares issued by firms through years. This study is vital for shareholders to make their proper investment decisions as they trade on the very young stock market in Vietnam.