The aim of this study was to determine the precedence order of the accounting information (factors) influencing choice of investment, to derive the relative weight of each factor and to identify differences and similarities in such factors between accounting experts and finance experts. Analytical Hierarchy Process (AHP) methodology was used for the outranking of accounting information (Baker & Haslem, 1973) including future economic outlook of the company, quality of management, future economic outlook of the industry in which the firm is a part, expected future growth in sales, financial strength of the company, expected future percentage growth in the company’s earnings per share, reputation of the company, rate of return the company earn on its assets, ease with which the company can sell its assets in case of failure, size of the company, expected future level of long-term interest rate on corporate bonds, value of a share of stock based on the company’s accounting records (book value) etc. The questionnaires were answered by accounting and finance experts. In this study, subjective opinions of accounting and finance experts turn into quantitative form with Analytic Hierarchy Process. Results of this study can be used by investors, Ministry of Economy, finance, accounting, business and economy students, professionals and academicians etc.
Baker, H. K., & Haslem, J. A. (november 1973). Information Needs of Individual Investors. The Journal of Accountancy, 64-69.
Luminita, R. (2014). Is It Important the Accounting Model Used by the Economic Entity in Making Decisions by the Users of the Information? Points of View. Annals of the University of Oradea, Economic Science Series, 23(1), 669-677.
Martin, A. (1971). An Empirical Test of the Relevance of Accounting Information for Investment Decisions. Journal of Accounting Research, 9, 1–31. doi: 10.2307/2490082
Murphy, M. C., & Soutar, G. N. (2004). What Individual Investors Value: Some Australian Evidence. Journal of Economic Psychology, 25(4), 539-555. doi: 10.1016/S0167-4870(03)00056-4
Nagy, R. A., & Obenberger, R. W. (july-august 1994). Factors Influencing Individual Investor Behavior. Financial Analysts Journal, 50(4), 63-68. doi: http:// dx.doi.org/ 10.2469/faj.v50.n4.63
Saaty, T. L. (1990). How to Make Decision: The Analytic Hierarchy Process. European Journal of Operational Research, North Holland, 48, 9-26.
Saaty, T. L. (2008). Decision Making with the Analytic Hierarchy Process. Int. J. Services Sciences, 1 (1), 83-98.
Saaty, T. L., & Vargas, L. G. (2001). Models, Methods, Concepts & Applications of the Analytic Hierarchy Process (Vol. 34, International Series in Operations Research & Management Science). Kluwer Academic Publishers
ERCAN, M., & ONDER, E. (2016). Determining the Importance Level of Accounting Information for Investors’ Decision Making. International Journal of Academic Research in Business and Social Sciences, 6(2), 121-135.
Copyright: © 2016 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
