The effect of Cash Flow Statement on Investment Decision at Salaam Somali Bank in Mogadishu-Somalia

The purpose of this study is to investigate the Effect of cash flow statement on Investment Decision at Salaam Somali Bank in Mogadishu- Somalia. This study conducted through Survey research design. The target population of this study was employee and managers of Salam Somali Bank, and the sample size consisted of 80 respondents. The data was extracted from the Salaam Somali Bank Mogadishu- Somalia through questionnaire, and the data analyzed by using SPSS. The study found cash flow statement has impact on the Investment Decision; this means if there is good cash flow statement can take effective Investment decision. The study recommended that a professional accountant should be employed by the firms in order to provide valuable information and keep accurate record of the firms’ account and effective management decision. The results of the study revealed that Operating and Financing cash-flows have significant positive effect on company’s profitability in the Banking sector of Somalia. And also that there is need for Salaam Somali Bank to enhance its operating activities, investing activities and financing activities so as to improve its Investment Decision. Through operating activities, investing activities and financing activities the Salaam Somali bank managers may be able to know credit worth clients and thus reduce their non-performing loans and improve Investment Decision of the Bank. Further research is recommended on the effect of cash flow statement of salaam Somali bank and to see how the element of cash flow statement influences and explains the loan performance of salaam Somali bank.