Abstract:
This study intended to investigate the use of accounting information on investment decision
making in banking industry, A case of selected banks in Tanzania. Specifically, this study sought
to examine the relevance of accounting information on investment decision making in banking
industry, to ascertain the materiality of accounting information on investment decision making
in banking industry and to evaluate the reliability of accounting information on investment
decision making in banking industry. The descriptive research design used in this study. The
population of this study consisted of employees including managers and head of departments
from the headquarters of the NMB Bank, CRDB Bank and NBC Bank in Tanzania and simple
random sampling was used to select respondents for this study. Both primary and secondary
data were used in the study. Primary data was collected by using questionnaire and semi
structured interview while secondary data was acquired from published and unpublished reports
from the selected banks. Quantitative results were quantitatively analysed using descriptive and
inferential statistics provided by om the SPSS and content analysis was used to interpret
qualitative data. Both validity and reliability of the Instrument was ensured in this study. The
study found that relevance of accounting information influences the investment decision making
in banking industry. Also, this study revealed that materiality of accounting information
influences the investment decision making in banking industry. Moreover, the study revealed
that reliability of accounting information influences the investment decision making in banking
industry. The researcher recommends that a comparative study of the challenges associated
with the generation and use of accounting information on investment decision making in banking
industry should be conducted.
