THE PROFITABILITY OF FINANCIAL REPORTING COMPONENTS WHEN MAKING INVESTMENT DECISIONS BASED ON THE ECONOMY

Abstract

The purpose of the article is to evaluate the usefulness of financial reporting components for investors to make investment decisions. Elements of financial statements are the main sources of financial information of the corporation for external users. Financial statements have been recognized as an important source of information for making the right investment decisions.

The research methodology is based on a convenient sample and covers only the city of Astana. Investors living in Astana were provided with a well-developed questionnaire regarding the usefulness of components for decision-making. Only 44 investors expressed their opinion through the online platform. The data is then analyzed using descriptive statistics, Kornbach-Alpha, correlation and association indicators.

Originality/value of the study It was found that financial statements have a significant impact on several investment decisions of investors. Elements of financial statements significantly help investors in making decisions about their investments. The study showed that the decision-making process by investors was closely related to the components of financial statements. Almost all the analysis values were above 50%, which indicated that the information provided through the elements of financial statements was useful to investors when making several decisions

The result of the study will encourage investors to use the information contained in the financial statements to make an informed investment decision. An attempt is made to identify a real scenario of the usefulness of financial statements for investors, as if the study covered only a limited territory of the Republic of Kazakhstan.