Government Intervention,Information Transparency And Corporate Investment Efficiency

For the listed companies under the special economic background, capital misallocation efficiency becomes a commonly occurring problem. The existence of the agency conflicts and information asymmetry result in the corporate non-efficiency investment behavior. So how to alleviate the distorted corporate investment behavior? Considering that accounting information has governance and pricing functions, enhancing the transparency of accounting information can solve the capital misallocation.Compared with other countries, Chinese enterprises are in the unique exterior environment. Both in the aspect of institutional background and the market, it makes the local government play a rule. And government's role largely affects development of the company. Considering the enterprises are in the background of "Chinese characteristics", this article introduces the intervention utility of authorities based on the research of information transparency and the inefficient investment of Chinese companies. Recent years more and more researchers involved corporate inefficient investment behavior into the context of our unique system. Against this background,the research of government intervention, information transparency and investment efficiency has an important significance.This paper selects 9055 firm-years data for 2004-2013 from Chinese A-share companies in shanghai and Shenzhen Stock Exchange as research sample, based on information asymmetry and agency theories, explores the relationship between transparency information and efficiency of investment, and based on government intervention, explores the change of the relationship involved in government intervention.We can make the following conclusions through the research:Firstly, information transparency is positively correlated with corporate investment efficiency, information transparency has governance value in the company's capital investment. Secondly, government intervention has a positive correlation with the over-investment and not a significantly correlation with the under-investment. Lastly, the existence of government intervention can restrain the relationship between information transparency and corporate over-investment but not affects the relationship between information transparency and corporate under-investment.These findings have vast importance to reduce the invalid government intervention and further promoting the marketization process, to enhancing Chinese firms information transparency,and to strengthening the supervision of information disclosure.