Question

How accounting information is helpful for investors?

Answer 1

This study intended to apply the concept of value relevance of accounting information. The value relevance of accounting information emphasizes on “how accounting information has a value relevant for market participants (investors)?”. How investors react to the announcement of accounting information? These reactions will prove that the content of accounting information is a very important issue in making investment decision.So, it can be said that accounting information was useful for investors. Analysis of this study used a qualitative approach. Datacollected using semi–structured interview method. Informant was a security analyst who provides advocacy to investors who make stock investment in real estate and property companies listed on Indonesia Stock Exchange (IDX), we used the snowball technique to determine informant. The results indicate that accounting information gives meaning usefulness for investors. Therefore, this study’s findings add strength of the concept of value relevance of accounting information and the usefulness of accounting information for market participants (investors).
(PDF) HOW ACCOUNTING INFORMATION IS USEFUL FOR.... Available from: https://www.researchgate.net/publication/233756672_HOW_ACCOUNTING_INFORMATION_IS_USEFUL_FOR_INVESTORS [accessed Jul 29 2018].

Answer 2

Answer:

financial statements

Explanation:

Investors use financial statements to obtain valuable information used in the valuation and credit analysis of companies. ... Knowledge of accounting helps investors determine an assets' value, understand a company's financing sources, calculate profitability, and estimate risks embedded in a company's balance sheet.