Research On The Influence Of Accounting Information Quality On Investment Efficiency

As one of the three core issues of financial decision-making, corporate investment has been a hot topic these years, the investment efficiency is directly related to the healthy development of the macro economy and the interests of shareholders. At present, one of the most important problems discussed by economics and managers is how to improve the corporate investment efficiency, a lot of literature in China explore how to constrain the inefficiency investment from the perspective of cash dividends and liabilities, but the number of theoretical and empirical research related to accounting information quality is relatively low. Based on the previous research, the research framework of this paper is as follows:Firstly, this paper develop a theoretical analysis of the way accounting information quality constrain the inefficiency investment, then, there is an empirical test about the correlation between accounting information quality and investment inefficiency. In the empirical test, we use the main board listed companies of Shenzhen stock market as research sample. Through the research of this paper, we expect to provide incremental contribution to the economic consequences of accounting information quality and the investment inefficiency restraint.This paper employs principal-agent theory, signal transmission theory and information asymmetry theory to analyze the way how the accounting information quality constrain the investment inefficiency. From the theoretical analysis, we found that the role of accounting information quality in improving the investment efficiency is reflected in these aspects:it reflects the signal transmission function through the full disclosure of information in the capital markets, which will reduce the phenomenon of the shortage of enterprise’s investment funds due to the less timely information acquisition; it reflects the supervision and incentive function through the application in corporate governance, which will reduce the phenomenon that an enterprise cannot correctly choose a good investment projects due to agency conflicts. This paper conduct an empirical test about the effect of information disclosure quality and earnings quality on the investment efficiency from the two dimensions:quality of accounting information disclosure and earnings quality of the accounting information quality. In the empirical test, this paper selects the main board listed companies of Shenzhen stock market from 2012-2014 as research sample. The results of empirical test found that the level of accounting information quality of enterprises is not high in total. The empirical results also imply that accounting information quality is significantly related to the over-investment and under-investment, which means the high quality of accounting information can reduce the over-investment and under-investment in Chinese listed companies; from the view of the control variable, the size of the company and the proportion of independent directors have impacts on the under-investment; the nature of equity has impacts on the over-investment.