"The role of financial analysis tools and indicators in rationalizing investor decisions" - Field study in the Damascus Stock Exchange -

Abstract

The research aims to know the role of financial analysis tools and indicators in rationalizing investor decisions. To achieve this objective, the researcher sought to know (1) the extent to which investors in the DSE understand the importance of financial analysis tools and indicators for making their investment decisions; (2) investors' understanding of the meaning of indicators and information that can be derived from financial analysis tools; (Iv) the degree of relevance of financial analysis tools for decision-making from the perspective of investors.

In order to achieve the objectives of the research and test hypotheses, the data were collected through a survey using questionnaire as a tool for collecting data on a sample of investors in the Damascus Stock Exchange, and workers in brokerage and brokerage companies (in view of receiving orders to buy and sell directly from investors either through direct personal contact or from Indirect contact, brokers and brokers, investor feedback and the fundamentals of investors' decision making), consultants in companies and offices offering financial services and advice (because many Investors to those companies and offices to benefit from their expertise, and then the ability of consultants to know the reactions of investors and determine the basis on which investors relied on their investment decisions). The questionnaires were then analyzed and the hypotheses tested using a set of appropriate statistical methods using the SPSS program.

The research reached a number of results, the most important of which were:

1. Investors recognize the importance of financial analysis tools and indicators to make their investment decisions by an explanatory rate of (0.574).
2. A large percentage of investors do not have sufficient understanding of the significance of the indicators of financial analysis, so that the coefficient of selection was low (0.245).
3. There is a clear role for financial analysis tools and indicators in investment decision making for investors. The correlation between the indicators and the information provided by the financial analysis tools and the investment decision was good. The correlation coefficient Pearson has a positive value of (0.648) with an explanatory rate of 0.420.

4. The rate of return on equity, then the rate of return on assets, then the normal EPS, occupied the top three rankings of importance for decision-making purposes from the perspective of investors.