The Importance of Financial Communication in the Investment Decision

The paper addresses the importance of integrated reporting for financial communication. Given that investors make decisions based on the information presented in the financial statements, they should be given special importance in terms of how to prepare and disseminate them, in order to reduce uncertainties and increase their usefulness. Issuers that provide information in financial reporting need to be aware of their significant impact on investment strategies, liquidity and the level of market capitalization. Financial reporting is undergoing a profound transformation from the perspective of new processing and dissemination techniques in the digital environment, while increasingly diverse information needs are on the rise, generating pressure from users. Thus, we seek to observe to what extent investors are influenced by the general market trend and the financial performance of issuers. Trading price volatility may warrant increased attention on behalf of the investor to preliminary financial reporting in the absence of other significant events that occurred around the reporting period.