Earnings Management,Ceo Characteristics And Efficiency Of Investment

Investment decision is a crucial link in the daily business activities of an enterprise,and the efficiency of investment is a direct reflection of the effectiveness of the allocation of resources in the enterprise.Investment efficiency not only affects the sustainable growth capacity of enterprises and the future value of enterprises,but also affects the speed and quality of social economic growth.In an ideal state,the investment decision of an enterprise depends on the net present value of the enterprise investment project.In the real economic environment,the efficiency of investment is affected by a variety of factors.As we all know,the modern enterprise system is based on the separation of ownership and management,which leads to the shareholders and managers serious asymmetric information problems in the enterprise management status of understanding,and the problems in the small and medium-sized shareholders is more obvious,resulting in enterprise financing costs increase,increase the possibility of non enterprise efficiency the investment behavior,and ultimately harm the interests of shareholders also hindered the healthy development of enterprises.Research has shown that,under high quality accounting information,it can inhibit the inefficiency investment caused by the problem of information asymmetry.Even so,but as a business agent of the managers,and shareholders in many ways are not the same,the out of their own interests,the management behavior is likely to lead to business objectives deviate from the shareholders’ expectations,thus forming a huge principal-agent problem.Moreover,based on their own advantages,business managers are likely to earn some degree of earnings management by means of accounting and non accounting.Therefore,earnings management will affect the efficiency of investment by increasing the agency cost and distorting the accounting information.As the top management of the enterprise,CEO often plays the most important role in the investment decision of the company.And because our corporate governance mechanism is not perfect enough,it has increased the voice of CEO in the company’s management direction.Therefore,the company’s development direction and investment behavior often have a strong personal style.Based on the above considerations,this paper first explores the relationship between earnings management and investment efficiency,and then explores the impact of the "high ladder theory" on the relationship between the two.The CEO features as the starting point,combined with the status quo of China’s social and economic development,first through the literature on earnings management and efficiency of investment of combing the domestic and foreign scholars,and then explore the changes between different CEO management of enterprise earnings management and the relationship between the efficiency of investment.In this paper,the financial data of all A-share non-Financial Listed Companies in Shanghai and Shenzhen in China for 2011-2016 years are analyzed in this paper.The author first discovered from the previous literature in the modified Jones model can well measure the degree of earnings management,this paper also intends to use this method;then by scholars at home and abroad are recognized by the Richardson(2006)model of the residual absolute value to measure the enterprise non efficiency investment scale,this paper finally add CEO features to study the variables(gender,age,tenure,holding or not),and by grouping regression of samples,the empirical test in the relationship between different CEO management under enterprise earnings management and investment efficiency.The research shows that(1)the extent of earnings management is positively correlated with the non efficiency investment relationship,the extent of earnings management is higher,the higher the degree of non efficiency of investment(2)compared to the CEO age and CEO age of enterprises,small enterprises in the extent of earnings management and non efficiency investment between positive correlation degree high(3)compared to the CEO women’s enterprises,the extent of earnings management and non efficiency investment CEO for men in the enterprise with a high degree of positive correlation(4)compared to the longer term CEO enterprise,positive correlation degree of earnings management and non efficiency investment between CEO short tenure enterprises in higher.(5)compared with the CEO holding enterprises,the positive correlation between the earnings management degree and the inefficiency investment of the enterprise which is not held by CEO is higher.The main innovations and contributions are:(1)the previous research on the investment efficiency of domestic and foreign scholars mostly focus on the external financing,cash flow and corporate governance and other aspects,the author introduce the factors of earnings management,to explore the influence on enterprise investment efficiency,provide a theoretical basis for the effective and improved direction the internal operation of the enterprise(2)through the analysis of different characteristics of CEO under the control of the enterprise earnings management and investment efficiency,provides direction for the selection of CEO enterprise supervision and incentive.