The mediating effect of investment decisions and financing decisions on the effect of corporate risk and dividend policy against corporate value

Over the years, corporate and institutional investors had suffered huge financial losses as a result of poor or wrong investment decisions taken on the basis of manipulated financial information. 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. This situation now calls for additional sources of information that would enhance the quality of corporate investment decision. This study investigated the impact of activity accounting adoption on corporate investment decisions in selected listed manufacturing companies in Nigeria. The study adopted survey research designs with a population of 54 listed manufacturing companies in Nigeria. Purposive sampling technique was used to select 510 respondents from a sample frame of 34 companies. A structured questionnaire was 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 analyzed and validated using descriptive and inferential statistics. The study found that activity accounting had significant influence on corporate investment decisions (Adj. R 2 = 0.425, R 2 =0.429,F(5474) = 120.747; p<0.001). The study concluded that activity accounting influences corporate investment decisions for different stakeholders in selected listed manufacturing companies in Nigeria. The study recommended that investors and decision makers alike should consider and monitor the organizational structure, budgetary control system and performance report in addition to the audited financial statement when embarking on corporate investment decisions.

Section: Justification For the Studymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Untitled

2020

“…However, cross-sectional data was adopted for this research, the result from time series data is yet to be obtained and this represents a major gap in this research. Efni (2017) investigated the mediating effect of investment decisions and financing decisions on the impact of corporate value. The population adopted was the property and real estate sectors quoted on the Indonesia stock exchange for a period of nine years that is from 2001-2008 using secondary data.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Generally, previous literature provides evidence that corporate investment decisions are universally influenced by various factors among which are corporate risk and dividend (Efni, 2017), knowledge spillover level (Zheng & Wang, 2018), financial statement analysis (Anaja & Onoja 2015, Vestine, Kule& Mbabazize, 2016)stock market valuation (Azarmi & Schmidt, 2016), earnings management (Julio & Yook, 2016), political uncertainty (Riem, 2016), cashflow sensitivity (Basty, 2016), interest rate (Ibi, Offiong & Udofia, 2015), corporate governance (Bistrova, Lace & Travonaviene, 2015), survival and replacement of worn-out assets (Pevic & Durkin, 2015), macroeconomics and law-related factors (Bialowalski, & Weziak-Bialowolski, 2014), capital structure (Arafat, Warokka & Suryasaputra, 2014) but not on responsibility accounting. Literature that dealt with responsibility accounting were only focusing on its effect on sustainable development (Tran, 2017), segment reporting (Zimnicki, 2016), organizational structure (Mojgan, 2012;Ritika, 2015), segment performance (Akembor & Nwaiwu, 2013), and profit planning (Ocansey & Enahoro, 2012).…”

Section: Justification For the Studymentioning

confidence: 99%

Responsibility Accounting and Corporate Investment Decisions among Listed Manufacturing Firms in Nigeria

2020

Over the years, corporate and institutional investors had suffered huge financial losses because of poor or wrong investment decisions taken based on manipulated financial information. 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. This situation now calls for additional sources of information that would enhance the quality of corporate investment decision. This study investigated the impact of responsibility accounting adoption on corporate investment decisions in selected listed manufacturing companies in Nigeria. The study adopted survey research designs with a population of 54 listed manufacturing companies in Nigeria. Purposive sampling technique was used to select 510 respondents from a sample frame of 34 companies. A structured questionnaire was used to collect data validated using Cronbach Alpha with Coefficient ranging from 0.772 to 0.907 with 97.2% response rate. The data were analyzed and validated using descriptive and inferential statistics. The study found that responsibility accounting had significant influence on corporate investment decisions (Adj. R 2 = 0.425, R 2 =0.429,F(5474) = 120.747; p<0.001). The study concluded that responsibility accounting influences corporate investment decisions for different stakeholders in selected listed manufacturing company in Nigeria. The study recommended that investors and decision makers alike should consider and monitor the organizational structure, manager's responsibility power, budgetary control system, performance report and reward system in addition to the audited financial statement when embarking on corporate investment decisions.

“…The goal of the company's investment decision is to maximize the Net Present Value (NPV) of the organization as positive NPV would increase the real assets (Husnan, 2000). Efni (2017) postulated that investment decisions had a significant direct impact on the corporate value. By implication, right investment decision will improve the corporate value of an organization.…”

Section: Corporate Investment Decisionsmentioning

confidence: 99%

Organizational Structure and Corporate Investment Decisions among Selected Listed Manufacturing Firms in Nigeria

2020

Globally, the rate at which auditors are been sanctioned for negligence and even outright collusion on financial statement misrepresentation continues to be on the increase. This situation remains unabated despite the establishment of various statutory regulations, standards and guidelines. Yet, investors both private, corporate and institutional continues to rely on the audited financial statement with adverse conquences resulting to substantial financial loses. This situation now calls for additional sources of information that would enhance the quality of corporate investment decision. This study investigated the impact of organizational structure on corporate investment decisions in selected listed manufacturing firms in Nigeria. The study adopted survey research designs with a population of 54 listed manufacturing firms in Nigeria. Purposive sampling technique was used to select 510 respondents from a sample frame of 34 companies. A structured questionnaire was 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 analyzed and validated using descriptive and inferential statistics. The study found organizational structure had significant influence on corporate investment decisions (R 2 = 0.361, β=0.674, t (484) = 16.522; p<0.05). The study concluded that organizational structure influences corporate investment decisions for different stakeholders in selected listed manufacturing companies in Nigeria. The study recommended that investors and decision makers alike should consider and monitor the adopted organizational structure in addition to the audited financial statement when embarking on corporate investment decisions.