ACCOUNTING CONSERVATISM AND INVESTMENT EFFICIENCY OF LISTED NIGERIAN CONGLOMERATE FIRMS

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 2005-2014. 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 conglomerate firms. The study suggest that need to embrace the element of conservatism in to the accounting regulatory framework, because of it role in constraining managers to act efficiently in an investment monitoring and decision making.