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