This research found that the quality of financial reports has a correlation with investment choices made by publicly listed Nigerian consumer goods businesses. Relevance, true representation, and comparability are three essential aspects of financial reporting quality that influence investors' judgments about portfolio selection and the efficiency of capital allocation. The purpose of this research is to respond to rising questions over the value and accuracy of financial statements. The research examined main data gathered from ninety-two investment professionals using methods such as multiple regression, correlation, and descriptive statistics. A descriptive and explanatory method was used in the investigation. Despite its small size and lack of statistical significance, the findings demonstrated a favorable correlation between investment decision-making and financial reporting quality. Among the expected traits, relevance had the smallest impact, while accuracy in depiction and comparability had the nextto-smallest impacts. The regression model showed that the specific characteristics of financial reporting quality could only account for 6.5% of the variance in investment choices, with a R² value of 0.065. The F-statistic demonstrated that the model was not statistically significant at the 5% level (2.053, p > 0.05), even though the Durbin-Watson statistic did not indicate any autocorrelation at 1.93. Even if this were true in principle, the paper claims that investors' behavior, macroeconomic instability, and a lack of confidence in disclosures would prevent high-quality financial reporting from having a practical impact on the Nigerian consumer products market. By enhancing reporting timeliness and comparability, raising auditing standards, and providing comprehensive investor education, it aims to allow better use of financial data in capital markets
Daniel Ebiye Dr. Okoroma (Sat,) studied this question.