Under The Competitive Environment,the Relationship Between Accounting Conservatism And Business Investment Efficiency

As the ultimate goal of enterprises is raising funds, investment creates value for theenterprise, as well as influences the efficient allocation of social resources. In recent years, inorder to eliminate the influence of the financial crisis erupted in the United States in2008,our government has taken investment-driven growth for many times. however, does this wayreally work? The answer is no. Blind investment, not only causes the waste of socialresources, but also affects the healthy development of the enterprise itself. At present thephenomenon of the low efficiency of investment is common in many enterprises, especiallyin manufacturing listed companies. The low efficiency of investment main displays in twoaspects, they are over-investment and under-investment. On the one hand, under-investmentis that a company misses some investment projects which can bring economic benefits,wastes the idle fund, and inhibits the management and development of the enterprise; On theanother hand, over-investment means that investment projects which cannot bring economicbenefit, wasting money, increasing the greater the probability of enterprise accountsreceivable be not back in time. Both two aspects of the low efficiency of investment can notmake the enterprise achieve the goal of value maximization. How to limit inefficientinvestment behavior to improve the investment efficiency of enterprises is one of the hotissues at home and abroad.Previous research explore influence on enterprises investment efficiency separatelyfrom the product market competition and accounting conservatism, not putting the threeaspects into a logical whole framework for research. Firstly, based on the two effects causedby product market competition, this paper study the influence of product market competitionto accounting conservatism. Secondly, this paper studies the influence of accountingconservatism to overinvestment and underinvestment. Finally, the product marketcompetition put into the investment efficiency model, our paper studies the influence ofaccounting conservatism to investment efficiency at competitive environment. Our paperprovides a theoretical basis for manufacturing enterprises to introducing products marketcompetition mechanism.