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. R2 = 0.425, R2 =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.
Keywords: activity accounting, corporate investment decisions, listed manufacturing firms
