The Research On The Impact Of Accounting Conservatism To Investment Behavior

Since the outbreak of the financial crisis in 2008, accounting conservatism has been got furth er attention. As a long history of the accounting standards, accounting conservatism has always b een a research hotspot. The investment decision is important to the company. Whether the corpor ate investment behavior is effective will decide whether the enterprise can achieve the maximizat ion of enterprise value. Recent years, research literature on economic consequences of the accou nting conservatism in the area of investment is gradually increasing. But the conclusions of the st udy are not completely consistent. Some studies have shown that accounting conservatism impro ves non-efficiency investment of Chinese listed companies. Some scholars think that accounting conservatism will reduce the efficiency of investment in a certain extent.For there is no recognized measurement of accounting conservatism, many of the existing lit eratures regard non-conditional conservatism and conditional conservatism as the same. This ma y be a cause of controversy. Therefore, this paper separates conditional conservatism and non-co nditional conservatism research to make researches. What is the influence of accounting conserv atism on the corporate investment behavior? On the basis of theoretical analysis, this paper colle cts data of Shanghai A share manufacturing listing corporation from 2011 to 2013 to make empir ical researches. It uses Richardson investment model to measure the non-efficiency investment. Also it takes the method of negative cumulative accrual to measure non-conditional conservatis m and the C-Score model to measure conditional conservatism. Through multiple linear regressi on, this paper tests conditional conservatism and non-conditional conservatism’s influences on th e investment behavior of the listed corporation. Through empirical analysis, it concludes that the non-conditional conservatism and conditional conservatism have significant influence on the inv estment behavior, and the conditions of robust can prevent excessive investment. It will also caus e insufficient investment. Finally, according to the conclusion of the study and the actual situatio n in China, this paper puts forward the related policy suggestions.