ABSTRACT

The study examined the effect of accounting ratios on investment decision of quoted manufacturing firms in Nigeria. However, the specific objectives pursued were; to ascertain the effect of profit after/before tax on investment decision of quoted manufacturing firms in Nigeria, to determine the effect of returns of assets on investment decision of quoted manufacturing firms in Nigeria and lastly to examine the relationship between turn over and investment decision of quoted manufacturing firms in Nigeria. The study adopted ex-post facto research design. Data generated from the annual reports and accounts of Nigerian Breweries PLC from 2014 — 2018 were analysed using simple regression analysis and Pearson Product Moment Correlation (PPMC). The statistical package for social science (SPSS) version 21 was used to execute the analysis. The result of the analysis provided the findings that; profit before tax has significant effect on the investment decision of quoted manufacturing firms in Nigeria, returns on assets has significant effect on the investment decision of quoted manufacturing firms in Nigeria, there is a significant relationship between turnover and investment decision of quoted manufacturing firms in Nigeria. Based on the findings made above, the study recommends that investors should thoroughly analyse the various accounting ratios before delving into investment decision and that investors who are not knowledgeable enough in financial analysis are advised to seek the help and services of experts.