FINANCIAL REPORTING

Financial Reporting

Financial Reporting

Information for Capital and stock markets

From the 70 studies were conducted in which noted the importance of the presentation of accounting or financial reporting from a purely financial standpoint, to the present where, in addition to following the same lines incorporated a number of other variables such as investor sentiment and the various types of information published, the views from which we have studied the importance of accounting and financial information have been mixed. The vast majority of these jobs extrapolate the results obtained from the analysis of markets and individual investors have been conducted in different countries. However, first differences were found in the results of some studies are analyzed according to whether markets or investors, on the other hand cultural differences affect the behavior of investors, so that the results could be different according to the place of origin of investors and where to invest. Based on all this, and as we have not found any study with a Spanish sample of individual investors, we posed the following research question: Is the accounting and financial information is really important for individual investors to Spanish when investing in stock markets? In many of these studies is that the accounting and financial information is less important than other variables. A possible explanation could be that individual investors do not have sufficient knowledge to be able to analyze or presentation is not intuitive or simple enough to be analyzed by a typical individual investor. If we rely on a definition of individual investor as the final decision maker, could be considered as individual investors as well as individuals, also entities that invest in equity markets, such as small and medium enterprises (SMEs) or nonprofits ( ENL) whose managers do have, or at least should have, and should have sufficient knowledge used to working and analyze financial information. In this light we arise our second research question: does the usefulness of accounting information is the same for different types of investors as ENL, SMEs or individuals? The results show how expectations variables or insights are most relevant financial information. However, this does not appear to be due to a lack of knowledge on the part of investors to analyze such information. What we lack is evidenced by the professionals on the actual preferences of individual investors in their decision making process.

Importance of Financial Information

Many times it has been well said that: The financial accounting information in the management of a company, properly analyzed and interpreted is the basis of every good decision, means that the financial executive must make decisions and therefore needs sufficient and timely information. By joining the financial statements standards or accounting principles, these states serve basis for making judgments on firm and for a sufficient analysis and interpretation of accounting and financial information that you corresponding result.

A company has historical financial information and future events that have interrelated elements. To find these relations, it is necessary to perform an auscultation of the information, which is to ...