Accounting Information Quality and Investment Intention: Examining the Moderating Role of Financial Literacy

Abstract

This study examines the influence of accounting information quality on investment intention while investigating the moderating role of financial literacy within the framework of the Theory of Planned Behaviour. A quantitative, deductive research design was employed using a structured questionnaire administered to 254 respondents comprising individual investors, business professionals, and accounting and finance students. Data were analysed using SPSS through descriptive statistics, reliability and validity assessments, regression analysis, and moderation analysis. The findings reveal that accounting information quality exerts a significant positive effect on investment intention, indicating that investors are more willing to invest when financial disclosures are credible and informative. Furthermore, financial literacy significantly moderates this relationship by enhancing investors' ability to interpret, evaluate, and effectively utilize accounting information in investment decision-making. The results demonstrate that financially literate individuals derive greater benefits from high-quality accounting information, thereby exhibiting stronger investment intentions than less financially knowledgeable investors. The study contributes to accounting and behavioural finance literature by integrating information quality and investor capability into a comprehensive explanatory framework for investment intention. The findings provide practical implications for corporate reporting practices, investor education initiatives, and public policy by emphasizing the importance of transparent financial reporting and financial literacy development in promoting informed, rational, and sustainable investment decisions across diverse financial markets.

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