Effect of Mental Accounting on the Investment Decision-Making in Nigerian Economy
- Post by: ams
- January 7, 2023
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This study examined the effect of mental accounting on investment decision-making in Nigeria’s economy. The specific objective sought to examine the effect of opening and closing accounting to evaluate the effect of Fungibility on the investment decision-making process in Nigerian economy. A survey research design was adopted for the study. The study adopts a primary source of data, a well-structured questionnaire was used to obtain the data, and it included multiple-choice and open-ended questions. The data collected were presented in tables and analyzed in percentages. The data was analyzed using Chi-square. SPSS 28.0 was used for coding and analyzing the data. The result revealed that closing accounting has a significant positive effect on the investment decision-making process with the calculated value of X2 (23.329), which is greater than the critical value of (3.45) while fungibility also has a significant positive effect on the investment decision-making process with the calculated value of X2 (19.441), which is less than the critical value (3.45) in Nigeria’s economy. we concluded that mental accounting has a significant positive effect on investment decision-making in Nigeria. We commend that, investors should always consider the firm opening and closing balance and as well the fungibility before embarking on any investment decision-making.
Keywords: Mental Accounting; Investment Decision-Making; Nigerian Economy
1Leonard Uwadiegwu Olife and 2Ozioko, Anastasia Chinonye