The Effect of Audit Report on Investments and Lending Decisions in Ghana (Published)
The Purpose of this research was to find out whether loan and investment decisions will differ if the loan or investment request was accompanied by audited Financial Statement from loan and investments amount granted when the when the loan and investment request is not accompanied by audited Financial Statement.. An experiment involving 68 loan and investment officers was performed. We manipulated the presence of audited Financial Statement (Audited Vs unaudited Financial Statement.) Our main findings were that the mean loan amount differ when loan application is accompanied by audited accounts from when loan applications are accompanied by unaudited accounts. We also found that investment decisions when accounts are audited differ from investment decisions taken when accounts are not audited. We observed that the mean loan and investment amount was larger when there was an audited Financial Statements
Keywords: Experimental Design, Financial Statements, Investment decisions, Loan decisions
CAPITAL INVESTMENT DECISIONS IN SMALL AND MEDIUM SIZED ENTERPRISES IN TURKEY (Published)
As accepted by economists, Small and Medium Sized Companies (SMEs) are very important for Turkish economy from various points of view. Professional management is becoming very popular in Turkish SMEs and family owned and managed companies began to realize the advantages of institutionalization and professionalization for sustainable growth and achievement. In line with this trend, this study researches how investment decisions are being made in SMEs in Turkey and to get insight as to the level of professionalism and utilization of financial tools and techniques for this purpose. With the objective of exploring how capital investment decisions are made in SMEs in Turkey, a survey was conducted among 65 SMEs located in Istanbul from production, construction and service industries. The main conclusion is that despite awareness on theoretically superior generally accepted evaluation measures, they are not used by the vast majority of the decision makers in the analysis of capital investments in SMEs in Turkey. By analyzing and outlining the As-is situation, this study aims to contribute to increase the awareness level; thus, motivate decision makers to interrogate and challenge the current situation in order to set up appropriate policies and action plans at both macro and micro levels.
Keywords: Capital budgeting, Investment decisions, NPV, Payback, SMEs