The Empirical Research Of Earnings Management Impacting On Investment Efficiency Of Listed Companies

In our country’s academic field of accounting and finance, the listed company’s investment efficiency and earnings management has always been two very hot research topic in recent years. Whether if the two seemingly topics are related, and could it be a effective research that consist of both of them within a framework? With questions and thinking on this issue, the direction of selecting a topic and the formation of the content of this article are given rise to. Higher quality of accounting information can govern non-efficiency, but earnings management behavior will distort accounting information by increasing information asymmetry and agency costs and thus have an impact on the investment efficiency of companies. Therefore, the impact of earnings management behavior on investment efficiency is studied, not only to distinguish the efficiency of investment into underinvestment and overinvestment, but also study the effects of different types of earnings management on investment efficiency of listed companies, and explain the path and mechanism of it. This research will not only enrich the economic consequences of earnings management, but also provide efficient management references for the govern of non-efficiency investment of listed companies, which has very important theoretical and practical significance.In this paper, we select the data from2008to2013of China’s A-share listed companies as research object, and eventually1613sample data enter the regression model. Econometric model of earnings management and investment efficiency were established, of which the measure of earnings management adapts two ways:accrued and real. First, we carry on multiple regression model to analyze the impact of earnings management on underinvestment and overinvestment, and then adapting two ways of measuring earnings management to check out the relationship between earnings management and non-efficiency investment.The study found it is pervasive that underinvestment and overinvestment inefficient investment phenomenon exist among listed companies of China, and found more underinvestment sample than overinvestment sample. For the earnings management behavior of listed companies, the study found companies not only adopt accrual earnings management but also adopt a more subtle real earnings management. Multiple linear regression results indicate that earnings management and overinvestment have a positive correlation, but found no significant correlation between earnings management behavior and underinvestment; At the same time, also found that both accrual earnings management and real earnings management have positive correlation with non-efficiency investment of companies. In the situation of prevailing earnings management behavior, this paper describes that earnings management has become an important reason causing the irrational investment of listed companies.