FINANCIAL ACCOUNTING INFORMATION QUALITY ON DECISION MAKING ON FINANCE COMPANY

Abstract

This quality of financial accounting information is critical in shaping decision-making processes within finance companies. This study explores how the accuracy, relevance, timeliness, and completeness of financial data influence managerial decisions, particularly in areas such as investments, risk management, and strategic planning. High-quality financial information serves as a foundation for evaluating a company’s financial health, guiding decisions that impact profitability and long-term sustainability. The research employs a quantitative approach, analyzing financial data from selected finance companies and conducting interviews with financial managers. The findings reveal a significant positive correlation between the quality of financial accounting information and effective decision-making. Accurate and timely financial data enable managers to make informed decisions, reducing uncertainty and enhancing the company’s competitive advantage. Conversely, poor-quality financial information can lead to suboptimal decisions, financial losses, and decreased stakeholder confidence. This study highlights the crucial role of high-quality financial accounting information in ensuring sound decision-making in finance companies. It emphasizes the need for robust internal controls, adherence to accounting standards, and continuous improvement in financial reporting practices. By maintaining high standards of financial information quality, finance companies can make more strategic decisions that contribute to better financial performance and sustainable growth. The implications of this study extend to policymakers, regulators, and finance company managers, underscoring the importance of high quality financial accounting information in driving effective decision-making and enhancing overall financial management. The study concludes that improving financial information quality is essential for achieving long-term success in the competitive financial industry.