Study On The Impact Od Enterprise Earnings Quality On Inefficient Investment

Investment plays an important role in the development of macroeconomic growth and micro-enterprises development.However,based on the fact that China is still in the stage of economic transformation,the capital market has not yet matured,and there are over-investment and investment problems generally,result in reducing the efficiency of capital allocation for businesses and markets.Therefore,the issue of investment efficiency is the hot spot of scholars at present.Foreign scholars have made some achievements in the measurement model and theoretical system of inefficient investment,but the research on the impact of inefficient investment in China is still in the development stage.Based on the principal-agent theory,information asymmetry theory and signal transfer theory as the theoretical basis,this paper chooses the sample data of2691 listed companies in Shanghai and Shenzhen Stock Exchange A-shares in 2007-2016,the Richardson model measures the degree of inefficient investment,the modified Jones model Earnings quality,the establishment of a linear regression model to test the impact of earnings quality on non-efficiency investment,and the introduction of the nature of property rights,corporate governance,corporate governance factors,to build cross-item verification of these three factors on the relationship of the earnings quality and inefficient investment.The results of this paper show that earnings quality has a significant inhibitory effect on inefficient investment(including overinvestment and underinvestment).The nature of property rights has no significant effect on the relationship between earnings quality and inefficient investment,and the earnings quality of state-owned enterprises and non-state-owned enterprises all have a certain degree of inhibitory effect on inefficient investment;Strengthening internal corporate governance can enhance the inhibitory effect of earnings quality on inefficient investment.The theoretical contribution of this study is to provide favorable evidence for the view that the high earnings quality can inhibit the inefficient investment.At the same time,it points out that there is no significant difference in the inhibitory effect of enterprises with different property rights.And the combination of the two factors-information disclosure and corporate governance,this paper can offer new directions for the theory of inefficient investment research.On the other hand,the practical contribution is to guide the enterprises to improve the efficiency of investment,enterprises should improve the earnings disclosure quality,strengthen corporate governance,reduce agency conflicts and information asymmetry,so as to improve the efficiency of enterprise investment.