BRAND ACCOUNTING AND ITS INFLUENCE ON INVESTOR DECISION MAKING( A STUDY OF FINANCIAL MARKETING)

CHAPTER ONE

INTRODUCTION

1.1Background of the Study

Corporate entities are accountable for thoroughly preparing and disseminating their audited accounting report for investors and other users. Investment decisions entail putting present money into long-term endeavors for future gain, since the success of these investment possibilities depends on accounting information. According to Williams (2002), accounting information represents company activities' financial performance. The term "accounting information" refers to the elements contained in an organization's financial statements that may be utilized to determine the accounting position of those organizations when making investment decisions. Users both inside and outside of the organization should have access to accounting information about a business organization in order to make well-informed investment decisions.

Investment decisions are extremely important, and caution must be used since they involve significant amounts of limited, hard-earned resources and are dangerous and have long-term consequences that no investor would want to deal with in the event of a failure. To prevent irrationality in investing decision-making, investors must thus have a solid comprehension of the cash flow statement, value added statement, income statement, price, earnings, value, and dividend per share, as well as other pertinent accounting statements. It should be highlighted that before to making investment decisions, independent external auditors must evaluate and thoroughly analyze the accounting information that management is responsible for preparing..

For a wide range of potential investors, managers, directors, accounting institutions, accounting analysts, government, regulatory agencies, the media, vendors, and the general public, the perceived relevance of accounting information is to provide trustworthy information about the true and actual accounting position, performance (profitability), and changes in financial position of a business investment opportunity.

The International Accounting Reporting Standards (IFRSs), the Nigerian Statement of Accounting Standards, and the Companies and Allied Matters Act (CAMA) of 2004 as amended all require that the content of accounting information be prepared in accordance with national standards, corporate governance, professional ethics, and codes of conduct (SASs). This is done to prevent accounting reporting fraud and scandals that can prevent investors and other consumers of this information from making wise and successful investment decisions. Expected standards and ethics in accounting reporting also serve the aim of reminding professional accountants, accounting specialists, auditors, and business organizations of the need of adhering to the norms of behavior that promote public trust in their offerings (Okafor, 2006). One important feature of accounting information, its impact on investment choices, and the link that exists between accounting information and investment choice are identified in this study. Finally, it has been shown that accounting information is helpful to investors, however there is little research on how much it has affected investors' choices. This study aims to investigate the impact of accounting information on shareholders' investment choices in Nigerian banks (A case study of selected Nigerian Banks).

1.2 Statement of Problem

It is impossible to overstate the value of accounting information while making investing decisions. Making informed investing decisions is crucial for reducing the risks associated with investment losses. Almost all investors have faced difficulties with investment decision-making at some point or another.Prioritizing non-accounting factors like social-political, climatic, demographic, face value, or simple share prices in their investment decision-making process rather than the accounting factor, these investors may have found themselves neck deep in investment projects before learning other accounting implications of such investment opportunities. Other investors may have skipped the cost of engaging the services of accounting firms. In other words, these investors have weakened the link between accounting data and investing choices.

This study's major goal is to determine how much important accounting information is taken into account by potential investors when making share investing decisions. There is currently a research gap since there is little empirical data in the literature about the impact of dividend per share on investment decision making. This study is necessary to close a perceived vacuum in the local literature and to refocus investors' attention on important accounting information rather than non-accounting information when making investment decisions.Therefore, this study's main goal is to investigate brand accounting and its influence on investor decision making: a study of financial marketing.

1.3 Objectives of the Study

The main objective of this study is to examine brand accounting and its influence on investor decision making: a study of financial marketing.Other objectives of the study include;

1. To determine the influence of brand accounting on investor decision making in financial marketing
2. To examine the factors that influence investor decision making in financial marketing
3. To determine the  relationship between brand accounting and investor decision making in financial marketing.
4. To identify ways of enhancing  investor’s decision making in financial marketing.

1.4 Research Questions

         The following questions guided this study;

1. What is the influence of brand accounting on investor decision making in financial marketing?

2. What are the factors that influence investor decision making in financial marketing?

3. Is there a  relationship between brand accounting and investor decision making in financial marketing?

4. What are ways of enhancing  investor’s decision making in financial marketing

1.5 Research Hypotheses

The following hypotheses were stated in the present study;

Hypothesis 1

H0: There is no significant influence of brand accounting on investor decision making in financial marketing.

H1: There is significant influence of brand accounting on investor decision making in financial marketing.

Hypothesis 2

H0: There is no significant relationship between brand accounting and investor decision making in financial marketing.

H1: There is significant relationship between ibrand accounting and investor decision making in financial marketing.

1.6 Scope of the Research Area

          This study is limited to the influence of brand accounting on investor decision making in financial marketing firms. Here, the researcher purposefully got data from  five (5) listed commercial banks in Nigeria for the study: United Bank for Africa, Zenith Bank plc, First Bank plc, Access Bank, and First City Monument Bank plc.

1.7 Significance of the Study

          The significance of this study is to examine brand accounting and its influence on investor decision making in financial marketing. Hence, this study will also analyze what enhance the decision making of investor in financing marketing companies in Nigeria.

• e finding of this study will be of immense benefit to banks by improving the banking performance financial analysts, investors, companies and financial organizations. This is because the study intends to help these stockholders in decision making.

The findings of this study will help in widening knowledge financial statement in investment decision making, it will also make the organization to appreciate the importance of sound financial statement in the provision of information necessary for decision making. The findings of this study will review the improvement in the organization handling the financial statement and show equally the ways through which improvement could be accomplished

1. inally this research will equally serve as a reference to students in this noble institution and other school who may be interested to embark on a further research study of this nature and above all, report of this study shall definitely add to existing knowledge in research methodology.

1.8 Organization of the Study

This research work is divided into five chapters. Chapter one is an introductory chapter providing background to the study, statement of the problems, objectives of the study, research questions, statement of hypothesis, scope of the study, significance of the study, organization of the study as well as opoerational definition of terms. Chapter two contains conceptual framework, theoretical framework, empirical framework and summary of empirical review. Chapter three dwells on research methodology focusing on research design, population of the study, sample size and sample determination, sampling technique, sources and method of data collection, method of data analysis, reliability of the instrument, validity of the instrument and limitation of the Study. The four chapter contains presentation and analysis of the data collected including interpretations, testing of hypotheses and summary of major findings. Chapter five is the concluding chapter which is based on the research findings. It includes summary, conclusions and recommendations.