ABSTRACT

The study examined Effect of Accounting Information on business and investment decisions. (A survey of selected companies in Abia state). Data were gathered with the aid of questionnaires administered on a sample of the 160 respondents and analyzed through the use of frequency distributions, percentage ratings! rankings and statistical tools of Pearson's product moment correlation coefficient (r) as well as t- test. The study has shown that some of the objectives of effective accounting information in establishments includes, understanding expected transactions and economic events, ensuring accountability etc. the key qualities of effective accounting information as identified by the study includes; Accuracy, relevance, timeliness, cost effectiveness, reliability etc. the study also revealed the major hindrance to the effective use of accounting information to include; investors lack of accounting knowledge, social and government constraints Technological problems, unqualified accounting staff. From the test of the study hypothesis, it becomes clear that there is significant relationship between availability of accounting information and efficiency of investment decision by managers, more so, there is significant relationship between decision makers' skill and effective use of accounting information. The findings of the study therefore revealed that accounting information is vita! in business and investment decision. However the efficacy of accounting information depends on its quality which is a function of the process that generated it the study conclude by recommending that Nigeria companies should make the policy of generating and using accounting information a necessary component of their management strategies to actualization of their corporate objectives.