The impact of financial statement manipulation on investor confidence

Nkemjika, Ogujiofor Magnus and Nwamaka, Ozuomba Chidinma and Onyemazuwa, Okonye and Onowho, Ilogho John (2025) The impact of financial statement manipulation on investor confidence. International Journal of Science and Research Archive, 14 (3). pp. 1117-1123. ISSN 2582-8185

The study investigates the Impact of Financial Statement Manipulation on Investor Confidence. The study adopts survey research design and utilized a population which comprises accounting professionals, financial analysts, and corporate decision-makers within the financial sector. Out of the population, a sample size of 200 was selected using probability sampling technique. Data was collected from the respondent with the use of structure questionnaire and the data collected were analyzed using 4point Likert. From the data analysis, result showed that falsification of revenue, inflated asset valuation with earning management among others factors such as lack of financial transparency affect investor confidence when making financial decision for investment. Based on this finding, the study recommended that companies should prioritize adopting transparent financial reporting practices that adhere strictly to regulatory standards and ethical guidelines and it is crucial for management to foster a culture of transparency, providing investors with clear, honest, and timely information