FINANCIAL ANALYSIS IN STOCK EXCHANGE INVESTMENT DECISION-MAKING: INSIGHTS FROM TANZANIA

Abstract

Financial analysis (FA) plays a crucial role in decision-making processes, particularly in investment decisions within the stock exchange (SE). While FA serves various purposes beyond investing, its significance becomes heightened when used as a determinant for investment strategies. This study aims to investigate the extent to which investors in the stock exchange prioritize financial statement analysis when making investment decisions, focusing specifically on investments in shares. The stock market encompasses a diverse array of securities, including shares and bonds. However, this study focuses solely on investments in shares, given their prominence within the stock exchange. By examining investors' attitudes and behaviors towards financial statement analysis, this research seeks to shed light on the role of FA in shaping investment decisions and strategies within the stock exchange. Through empirical analysis and survey methodologies, this study explores the relationship between financial statement analysis and investment decisions in shares. Key factors influencing investors' consideration of FA in their investment processes are identified and analyzed, providing insights into the underlying mechanisms driving investment behavior within the stock exchange. The findings of this study have significant implications for both individual investors and financial institutions operating within the stock exchange. By understanding the extent to which investors prioritize FA in their investment decisions, stakeholders can develop more effective investment strategies and tools tailored to investors' needs and preferences.