Paper Title: Effects of Accounting Information on Investment Decisions: A study of selected Companies

on the Nigerian Exchange Group.

Presented By: James Catherine Emuroghene

Chapter 1 -----Introduction:

The study focused on two variables: Accounting Information as Independent variable and Investment
Decisions as Dependent Variable. The independent variable (Accounting Information) is measured using
sustainable earnings, free cash flows, return on assets and return on equity.The Dependent Variable
(Investment Decisions) is measured using the natural Logarithm to the cash invested by shareholders.

Statement of problem: The inability to get timely, adequate,clear,relevant and authentic information
hinders the effective utilization of Accounting Information in monitoring shareholders invested funds.

The study has four research questions,four research hypothesis and four Aims and objectives.

Chapter 2------ Literature Review

This chapter focuses on reviewing the existing Literature in the areas of conceptual, theoretical and
empirical studies.

The theoretical framework is hanged on signaling Accounting Information Theory (SAIT) and Decision-
Usefulness of Accounting Theory(DUAI). SAIT holds the perspective that Accounting Information
significantly impacts Investment Decisions-Making.

Chapter 3----- Methodology

The study used an ex-post facto research design to analyse the effects of Accounting Information on
Investment Decisions using the secondary data. The study made use of Panel Data. It used a simple
regression model to assess the effects of independent Variable on the dependent Variable.

Chapter 4----Results

In this chapter the data gathered were presented, analysed and then discussed. The statistical tools used
in analysing the data include mean,standard deviation, simple regression.
Chapter 5----- Findings, Recommendation, contribution to knowledge

This chapter focuses on the 4 findings, 4 recommendation, Limitations of the study and contributions to
knowledge.

Contribution to knowledge: The model used in the study can be employed by future researchers in
assessing the effect of Accounting Information on Investment Decisions of companies in both developed
and developing countries.

CONCLUSION: For investors or shareholders to make informed decision, Accounting Information must
be timely, relevant, clear and authentic.

THANK YOU.

RESEARCH QUESTIONS

The study was guided by the following research questions in accordance with the specific objectives of
the study.

1. what effect do sustainable earnings have on Investment Decisions of publicly quoted industrial and
consumer goods companies in Nigeria?

2. What effect does free cash flows have on Investments Decisions of publicly quoted industrial and
consumer goods companies in Nigeria?

3. To what extend does return on assets affect investments Decisions of publicly quoted industrial and
consumer goods companies in Nigeria?

4. To what extend does return on equity have on Investments Decisions of publicly quoted industrial and
consumer goods companies in Nigeria?

Research Hypotheses

The null hypotheses were formulated, developed, and evaluated by a significance level of 0.05%

*Sustainable earnings have no significant effect on investments Decisions of publicly quoted industrial
and consumer goods companies.

*Free cash flows have no significant effect on investments Decisions of publicly quoted industrial and
consumer goods companies.
*Return on assets has no significant effect on Investments Decisions of publicly quoted industrial and
consumer goods companies.

*Return on equity has no significant effect on investments Decisions of publicly quoted industrial and
consumer goods companies.