Ownership Property,Earnings Management And Investment Efficiency

Investment is the root of enterprise survival and growth.It not only affects the creation of enterprise value,but also has a profound impact on the macro economy and capital market.Therefore,investment efficiency is worthy of attention.High-quality accounting information helps to improve investment efficiency.While earnings management will distort accounting information,aggravate information asymmetry and agency problems and thus adversely affect investment efficiency.This paper discusses the effect of earnings management on investment efficiency from the perspective of accrual earnings management and real earnings management,and taking the special institutional background of China into account,discusses the moderating role of ownership property.It can make the research about economic consequences of earnings management richer and provide a theoretical basis for improving the investment efficiency of listed companies which has both theoretical and practical significance.This paper combines normative research and empirical research methods.Firstly,it reviews some relevant literature,analyzes some relevant theories and puts forward research hypotheses after theoretical analysis.Secondly,it uses the 2011-2015 data of Shanghai and Shenzhen A-share manufacturing listed companies to make empirical test,using the Richardson model,modified Jones model and Roychowdhury model to measure investment efficiency,accrual earnings management and real earnings management,respectively.It constructs a multiple regression model to investigate the relationship between earnings management and investment efficiency and the moderating role of ownership property.Finally,it gives some policy suggestions and illustrates the research limitations and future prospects.Results show that both accrual earnings management and real earnings management will reduce investment efficiency.The relation between accrual earnings management and investment efficiency is more significant in non-state-owned listed companies.The positive relation between accrual earnings management and over-investment is more significant in non-state-owned listed companies.But for the real earnings management,to a certain extent,the empirical results show that the effect of real earnings management on investment efficiency is more significant in state-owned listed companies.