The Effect of Qualitative Characteristics of Useful Financial Information on Investment Decisions

The paper aims to identify the impact of accounting information characteristics on investment decisions. The researcher conducted his study on (56) industrial companies listed on Amman Stock Exchange. He developed a questionnaire consisting of (52) items and distributed it to a random sample of the study population, which included 225 employees ranked as Manager, Deputy Director, Financial Director, Head of Department, and Deputy Head of Department. Descriptive and analytical statistical methods were applied to verify the validity of the hypotheses. The study found that the basic characteristics of accounting information (relevance and Faithful Representation) have an effect on investment decisions at the significance level of (0.05 ≥ α). Additionally, statistically significant effect at the level of significance of (0.05 ≥ α) were found for the effect of the enhancing properties (comparability, comprehension, timelines, verifiability) on investment decisions. The study recommended that accountants be trained and qualified in accordance with the accounting framework adopted by the institution. This is critical to the ability to prepare a set of financial reports that contain honest, trustworthy, accurate and objective information which stakeholders can rely on in the decision-making process.