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Proceedings of the International Conference on Business Management & Information Systems, 2012

The Relevance of Annual Reports – The Use of Annual Reports in Investment and Finance
Decisions in a Developing Country
Fatima Anwar, Saira Anwar1 and Abdul Mannan
Department of Accounting and Finance, The University of Lahore (City Campus), Lahore, Pakistan
1
Department of Computer Science and Information Technology,
Forman Christian College (A Chartered University), Lahore, Pakistan
E-mail: [e-mail]; [e-mail]; [e-mail]

ABSTRACT
Making an informed decision is always the toughest task for any investor, Financial Analyst or Creditor. There are certain ways which are adapted by investors, Financial Analysts and Creditors in general to make a right choice and decision which later prove itself as worthy in terms of profit and loss. There is no one criteria which are being used by various stakeholders who perform the investment and finance decisions. From market trends to stock exchange information, every individual or groups rely on their own sources and their own way of dealing with situations and making decisions. In today’s arena annual reports provides information which can be used not only for future long term decisions but can also provide short term benefits. These can also help in diagnosing the company current profile, its economic and financial performance, risks and the value it will yield to the people who will get involved with the company. Looking at the data provided in these reports the decision making process can be standardized, monitored and may also be controlled. This study is an attempt to avail the benefits provided by annual reports and the information it has for its users. The current paper analyses the use and effectiveness of Annual reports and the help which they yield to Financial Analysts,
Creditors and Investors for their decisions and how much reliance

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