FINANCIAL INFORMATION AS A TOOL FOR MANAGEMENT DECISION MAKING
ABSTRACT
This study examined financial information as a tool for management decision making. In order to actualize the objectives of the study, various literature and theoretical issues were discussed. The instrument used for the purpose of this research was gathered through primary and secondary sources. The primary source is through questionnaires while the secondary source extracts from textbooks by different authors, journals and other publications. The mass of information generated from the questionnaires was summarized in form of table and analyzed using simple percentage. The researcher administered one hundred (100) questionnaires to respondents, out of which ninety-five (95) were retrieved for the purpose of presenting and analyzing responses to issues raise in the questionnaires. The data collected was analyzed using Z-test statistical tool. The findings from analysis revealed among other things that there is a significant relationship between financial information and future performance of the organization. We therefore recommend that corporate organizations must encourage changes that engender more transparent communication of information as to finance based performance measures to users of financial statements.
 TABLE OF CONTENTS                       
 CHAPTER ONE: INTRODUCTION
Background of the Study     
Statement of the Research Problem      
Objectives of the Study               
Hypothesis of the Study               
Scope of the Study                     
Significance of the Study     
Limitation of the Study                
CHAPTER TWO: LITERATURE REVIEW
Introduction                       
The Manager as a Key Player in Decision-Making
The Role of Financial Accounting Information
Information as a Tool for Management Decision Making
How Managers Acquire and Use Information
 CHAPTER THREE: RESEARCH METHODOLOGY
3.1        Introduction
3.2        Research Design         
3.3        Population
3.4        Sample Size              
Sampling Technique    
3.6        The Research Instrument     
3.7        Method of Data Analysis      
 CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION
4.1    Introduction                       
4.2    Descriptive Statistics   
4.3    Test of Hypothesis      
 CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION
5.1    Introduction               
5.2    Summary of Findings          
5.3        Conclusion                         
5.4        Recommendations                      
Bibliography               
Appendix                     
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Decision making process requires information – financial and non-financial information as well. The most important financial information needed in the process of business decision comes from accounting. Therefore, we can say that accounting is a service function to management. It, basically, processes or gathers and studies “raw data” and converts them into suitable information in the process of decision making. The basic characteristics of the accounting are: gathering, processing and presenting accounting (financial) information; information considering company’s business and those directed towards different interested users (Zager and Zager, 2006).
Information plays a crucial role in the decision-making process. In fact, information is a great commodity in any organizations. Those who are in charge of managing an organization (i.e. the senior and middle managers) are more concerned with the concept of information than others (Ghebi, 2001).
The permanent need for conformability with the new changes has entailed more and more the availability of the accurate and timely information to the senior manager of the organizations. Following this, the reasonable monitoring of the conditions and the allocation improving will result in an efficient management. The more access a manager or director has to precise information, the more efficiently he/she can improve strategies and make logical decisions, leading to more competencies in his/her organization.
The way a manager makes decisions can be a good benchmark for the efficiency of an organization. In order to reach high quality decisions, it is necessary to gather precise and timely information and report and put them at the decision makers' disposal (Dadkhah, 2004).
Decision-making is the essence of all activities of a manager. It is, according to Simon (1994), synonymous with management. In other words, all activities of the managers relate to the process of decision-making.
According to researches, timely access to useful and effective information can decrease the risk of making wrong and inaccurate decisions and can reduce a manager's uncertainty about the contingent events. Decrease in extra costs, optimal usage of resources and high productivity are all among the outcome of correct decisions.
Problems, like wrong decisions, depend on the trial and error method, uncertainly and indecisiveness of managers. Problems will be minimal if effective and necessary information is available (James and Friman, 1996; Asadi, 2003).
 STATEMENT OF THE RESEARCH PROBLEM
It has been realized that many business organizations fails as a result of management not being supplied with timely, accurate and adequate financial information for effective decision making. Even in situations were adequate and accurate financial information exist, it is often overlook by those who should make good use of them.
It is very obvious that, financial information are needed by both management as an insider in an organization and government, public, trade unions etc as external body to the organization. But this all important material which aid management and other users to make precise and inform decision has not be fully appreciated, hence an evaluation of the important of how it aids users to make inform decisions is necessary.
Against this backdrop, the following research questions are raised:
Is there significant relationship between financial information and future performance of the organization?
Do organization managements rely on financial information before making decision?
Do investor and other parties take decision base on organization’s financial information?
 OBJECTIVES OF THE STUDY
The objective of this study to investigate financial information as a tool for management decision making.
The specific objectives are:
To determine if there is significant relationship between financial information and future performance of the organization.
To verify if organization managements rely on financial information before making decision.
To find out if investor and other parties take decision base on organization’s financial information.
 HYPOTHESIS OF THE STUDY
The hypothesis for this study is;
Hypothesis I
H0:    There is no significant relationship between financial information and future performance of the organization.
H1:    There is a significant relationship between financial information and future performance of the organization.
 Hypothesis II
H0:     Organization managements do not rely on financial information before making decision.
H1:    Organization managements rely on financial information before making decision.
 Hypothesis III
H0:    Investor and other parties do not take decision base on organization’s financial information.
H1:    Investor and other parties take decision base on organization’s financial information.
 SCOPE OF THE STUDY
This research work examines financial information as a tool for management decision making.
The population of the study is the entire quoted companies in the Nigeria Stock Exchange, while the sample size will be restricted to selected quoted companies in Nigeria using the simple random sampling technique.
The length of period covered by the study was five (5) years (2007 – 2011).
Geographically, the study will be conducted in Benin City, Edo State.
SIGNIFICANCE OF THE STUDY
There are several compelling reasons for undertaking this study. It will update existing body of knowledge by going a step forward in filling many of the obvious gaps in the controversy of financial information and management decision making.
It is therefore expected that the study findings will be if immense benefit to corporate bodies, policy makers, government regulatory agencies, etc. it will also prove very useful to researchers, as well as members of the academia.
Besides, the findings of this study will lay the foundation for other academia and research students (both home and abroad) to know what evidence exist in decision making concerning financial information.