Empirical Research On The Impact Of Accounting Information Quality For Business Investment Efficiency

As two aspects of the operation of capital, capital investment and capital financing have a very significant impact on the operation of the enterprise. Capital investment is an important strategic decision in the enterprise. The investment inefficiency is a specific description of the capital investment and is caused by the agency conflicts and information asymmetric, besides, it may damage the stockholder’s wealth. To solve the problem of the investment inefficiency, the shareholders must seek for more effective governance mechanisms to solve the agency conflicts and the problem of information asymmetry. Foreign scholars make research on the accounting information governance and pricing and find that the high-quality accounting information is regarded as one of the primary means to alleviate the agency conflicts and information asymmetry. Domestic scholars’ study of the situation of China’s listed companies is mostly from the perspective of ownership structure, financial development and internal cash flow. Articles on the relationship between the quality of accounting information and the investment efficiency is not mature.In view of this situation, this article will combine the method of normative research and empirical analysis, and use our2011CSI A-Share Listed Manufacturing Companies as the study sample to study the correlation between the accounting information quality and investment efficiency. In the normative analysis part, this paper make the comprehensive review of domestic and foreign scholars’ study on the quality of accounting information and investment efficiency. Then use accounting information quality signal role and supervisory role to explore the mechanism of the impact of the quality of accounting information for business investment efficiency.In the empirical analysis part, this paper use accrual quality, accounting conservatism, cash flow variability and surplus smoothness to measure the quality of accounting information. And use investment efficiency index (CI) to measure the efficiency of investment. Finally, it verify the conclusions of the theoretical analysis through the descriptive statistical analysis, correlation analysis, multiple regression analysis and other statistical methods.The results of this study are as follows:The quality of accounting information make a direct impact on the investment efficiency. As an effective measure, the quality of accounting information can reduce the moral hazard and adverse selection caused by the problem of information asymmetry, and then improve the enterprise efficiency of current investment. It shows a positive correlation between the quality of accounting information and corporate investment efficiency. Studying the investment inefficiency from the view of accounting information quality provide a new perspective for us to research on the capital investment and provide direct evidence for further research.