It is therefore, obvious that the investment markets have a sign efficient role to play in economic development. Growth occurs when savings are channeled into productive investments which in turn enhance the capacity of the economy to produce goods and services which have bearing on standard of living. Leila (2007) indicates that the capital market which is the main investment market for listed companies publishing financial or accounting information play a crucial role in stimulating industrial growth as well as economic growth and development.
This means that a capital market will succeed in facilitating economic growth and development if it can encourage the flow of savings / investment through the purchase of securities issued by government or private enterprise and others with the aim of financing the implementation of capital projects. However, instead of the potential of this industry to be harnessed we are having a big abuse of financial and accounting information presentation to the general public. Inaccurate financial and accounting statement disclosures and falsification is now the other of the day.
Traditionally, investors within the public rely on this accounting and financial information and general information from enquiries as a basis for their investment decisions but this is not the case any more, with the level of corruption and incompetence that has bedeviled the sector. This has large implications for ethical practices within the sector, growth of the sector, investment direction and growth and development of the country. The aim of the research is to investigate the relevance of accounting information to investment decisions in Nigeria.
Order it from experienced writers now!
For Only $13.90/page $19.90
The aim of the research is intended to be ACH ivied through the following objectives: Examine the current state of accounting information as an aid to investment decisions in Nigeria * Examine if accounting information in Nigeria meet regulatory criteria and standards. * Examine the contribution of accounting information to investors decision among other factors Proffer recommendations in helping to solve the inherent problems in accounting information and presentation in Nigeria 1. Coalescence OF STUDY The quality of accounting information in terms of its accuracy, adequacy, reliability and mode of disclosure is a major determinant of the level of efficiency of the capital market and other decision tasks. The relevance of accounting information to day-to-day running of the organization and the general public, especially for investors cannot be over-emphasized. Investments are normally undertaken under condition of uncertainty. Hence, one of the incentives required is a mechanism to help reduce the level of uncertainty to which a potential investor could be exposed (Arroyo, 2007).
A careful execution of this research work which is tended to reveal problematic areas and investors concern would if implemented well would position the mechanism of accounting and financial information in performing its primary ole visa-;-visa information and reduction of risk. A good accounting information presentation and mechanism if So achieved determines the nature and extent of moral hazard to which existing and potential investors could be exposed, thereby influencing the level of optimality of allocation of societal resources.
The research will also tend to inform and educate the illiterate public on the dangers involved in decisions based on paper data alone without corroboration from objective financial experts. Furthermore, the research paper would be advisory to government and financial regulatory leslies in formulating procedures and more stringent policies in combating these professional gaps within the industry. As well this research is intended to fuel further researches in this field of study.