This research work focused on “Effect of Accounting Information on Investment Decision” examined the usefulness of accounting information to investors. The study covered a period of ten years and used some selected companies in Nigeria stock exchange market. The data used were collected from Nigerian stock exchange fact book and annual reports of the selected quoted companies. The variables (dependent and independent) were tested using Regression Analysis. The results showed that there was a strong positive relationship between Dividend Per Share (DPS), Earning Per Share (EPS), and Book Value Per Share (BVPS), with Last Day Price Per Share (LDSP). The degree of correlation between the dependent Variable- share price and the independent variables (DPS), (EPS) and (BVPS), were 0.747, 0.848 and 0.868 respectively at a statistically significant 5% level. The result showed that there was a positive significant relationship between accounting information and investment decision on stock prices of the companies within the period under review and a weak relationship existed between the last Day Share Price of manufacturing companies and service based companies. The study therefore recommended among others that Nigeria Stock Exchange enforce detailed publication of financial statements in compliance with International Financial Reporting Standard (IFRS) requirements and timely publication of accounting financial statement so as to assist investors in their investment decision, that share prices of firms listed in the stock exchange are significantly affected by the accounting information such as DPS,BVPS,EPS, there is no significant difference of the effect of Accounting Information on both manufacturing and service sectors.
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