OPTIMISING CORPORATE INVESTMENT DECISIONS AMONG SELECTED LISTED NON-FINANCIAL FIRMS IN NIGERIA THROUGH PROFITABILITY ACCOUNTING

Adeniji, Y. A. ()
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Adeniji, Y. A.: Department of Accountancy, Postal: Yaba College of Technology, Yaba, Lagos, Nigeria, ,, https://www.afarng.org/mjms/

Multidisciplinary Journal of Management Sciences, 2020, vol. 2, issue 1, 174-197

Abstract: Studies have shown globally that the practice of financial report misrepresentation commonly leads to loss of credibility, integrity and confidence in accounting information and the earnings become questionable. Over the years, corporate and institutional investors had suffered substantial financial losses as a result of poor or wrong investment decisions taken based on manipulated financial information. This situation now calls for additional sources of information that would enhance the quality of corporate investment decision. This study investigated the impact of profitability accounting adoption on corporate investment decisions of selected listed non-financial firms in Nigeria. The study adopted survey research designs with a population of 54 listed non-financial firms in Nigeria. The purposive sampling technique used to select 510 respondents from a sample frame of 34 companies. A structured questionnaire used to collect data validated using Cronbach Alpha with Coefficient ranging from 0.772 to 0.907 with 97.2% response rate. The data was analysed and validated using descriptive and inferential statistics. The study found that profitability accounting had a significant influence on corporate investment decisions. The study concluded that profitability accounting influences corporate investment decisions for different stakeholders in selected listed non-financial firms in Nigeria. The study recommended that investors and decision-makers alike should consider and monitor the budgetary control system, performance report and reward system in addition to the audited financial statement when embarking on corporate investment decisions.

Keywords: Corporate investment decisions; Listed non-financial firms and Profitability accounting. (search for similar items in EconPapers)
Date: 2020
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