Research Article

EFFECT OF ACCOUNTING CONSERVATISM ON INVESTMENT EFFICIENCY OF LISTED CONGLOMERATE FIRMS IN NIGERIA

Lawal Aminu1*, Abubakar Muhammed Audi2, Shehu Usman Hassan3
1 Department of Accounting, Kaduna State University, Kaduna- Nigeria
2 Department of Accounting, Ahmadu Bello University, Zaria- Nigeria
3 Department of Accounting, Kaduna State University (KASU)-Nigeria
* Corresponding author: Tanabiyyu911@gmail.com
Published: Dec, 2016
Pages: 44-57
Views: 101
Downloads: 104

Abstract

This study explores the relationship between Accounting conservatism and investment efficiency in Nigeria. The study model examined the relationship between the independent variables (Accounting conservatism) and the dependent variable of investment efficiency, by applying the simple regression analysis of 10 years data Ordinary Least Squares (OLS) which cover the period of 2006-2015.All of tests have been done using stata11 statistical software. The results obtained from this research indicate that there is a significant relationship between accounting conservatism and investment efficiency. The study concluded that there is a positive relationship between Accounting conservatism and investment efficiency in Nigerian coglomerate firms. The study suggests that the management of conglomerates firms in Nigeria need to embrace the element of conservatism in to the accounting policies and regulatory framework as it plays a significant role in constraining managers to act efficiently in respect of an investment monitoring and decision making.

Keywords

Accounting conservatism investment efficiency coglomerates firms.

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How to Cite

Aminu, L., Audi, A. M., & Hassan, S. U. (2016). EFFECT OF ACCOUNTING CONSERVATISM ON INVESTMENT EFFICIENCY OF LISTED CONGLOMERATE FIRMS IN NIGERIA. Nigerian Journal of Accounting Research, 12(2), 44-57.

L. Aminu, A. M. Audi, and S. U. Hassan, "EFFECT OF ACCOUNTING CONSERVATISM ON INVESTMENT EFFICIENCY OF LISTED CONGLOMERATE FIRMS IN NIGERIA," Nigerian Journal of Accounting Research, vol. 12, no. 2, pp. 44-57, December 2016.

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