Research On The Influence Of Accounting Conservatism On The Investment Behavior Of Enterprises

Along with the challenge of the advantages and disadvantages of accounting conservatism,the economic consequences of accounting conservatism have become a new research hotspot.From the explanation of the causes of accounting conservatism through debt contract and manager compensation contract and the definition of the accounting conservatism,we can see that the accounting conservatism will inevitably has an impact on both sides of the enterprise:On the one hand,accounting conservatism can restrict the opportunistic choice of management,reduce information asymmetry,reduce agency costs,then has some positive impacts;On the other hand,the accounting conservatism makes the enterprise may underestimate the assets and excessive loss of recognition,reduce trust and enthusiasm for Managers,then has some negative impacts.At present,scholars continue to increase the depth and breadth of accounting conservatism,and add many factors such as the system background,the property rights,the manager's emotion and so on in the study of the influence of accounting conservatism on corporate investment behavior.In this paper,combined with previous studies and prospects,the economic factors are included in the study of accounting conservatism and corporate investment behavior.Many Enterprise' production and management happen in the economic situation,the number of corporate investment behavior,investment scale and investment projects are affected by the economic impact,The conservatism principle of accounting conservatism on the impact of corporate investment behavior in the different economic situation is different,whether the advantages are more than the disadvantages or not still needs to be discussed under different economic conditions.In this paper,firstly explain the definitions of the economic cycle,the accounting conservatism and corporate investment behavior and related literature,analyze the influence of accounting conservatism on corporate investment behavior by the theory hypothesis,and summarizes the theoretical basis of this article;Secondly,this paper puts forward the research hypothesis and research design,the data of all the listed companies in chinese A stock market from 2013 to 2014 are studied,divide the economy into 3 stages,set the two dummy variables:Exp and Ret to represent the economic expansion and economic retrenchment;Finally,the multiple regression analysis are used to study the effect of accounting conservatism on firm's investment behavior in terms of the total sample and the economic cycle samples.Empirical results show that: In different stages of the economic cycle,the impacts of accounting conservatism on corporate investment behavior are different;In the period of the expansion economic cycle,accounting conservatism and corporate investment behavior are negative,with the majority of enterprises in this stage will expand the scale of investment and increase the investment behavior,accounting conservatism will inhibits the blind expansion of business investment in the rapid economic rise,and thus has a favorable impact on corporate investment behavior;In the period of the economic retrenchment and recovery before the shock adjustment period,accounting conservatism is positively related to corporate investment behavior,combined with the majority of enterprises in this stage will reduce the size of investment and reduce investment behavior,accounting conservatism will exacerbates the reduction of corporate investment behavior,which is not conducive to corporate investment behavior.