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Fainancial accounting information shows history. Investors are futurestic, I think they are more intersted to see solid, realistic business plans.
i believe investors seek fairly presented financial information for their investment decisions, companies have to fulfill these requirements by adapting different accounting standards like for ex, ( GAAP, IFRS) to satisfy investors needs, in addition appointment of External auditing company especially for the big four auditing companies will help meeting investors expectations.
Take Is Little Example, The customer will not buy anything without knowing any information about product. So the investor is just like an investigator for investing anywhere. Investor required to know all about financial information event that why the1st party looking for investment. Investor collects all the information about ROI, Capital, Assets and much more for investment.
Quaulity of the Financial accounting information obtained can help an investor take a correct investment decision like to invest in a particular company or not or to withdraw the investment already made.If quality of the information is not upto the mark, it may lead to wrong decisions being taken.
