Research On Product Market Competition,Accounting Conservatism And Enterprise Overinvestment

The level of investment efficiency is related to the long-term development of enterprises.Therefore,how to manage inefficient investment is of great theoretical and practical significance.In practice,there are different degrees of overinvestment in China's listed companies.Previous studies have shown that product market competition and accounting conservatism respectively to influence enterprise excessive investment,based on this background,this article from the perspective of integration to study the product market competition and common governance effect of accounting robustness to the enterprise over-investment.In this paper,based on related literature review,in order to exist excessive investment of listed companies from 2014 to 2016 as the object,based on the principal-agent theory,asymmetric information theory,the free cash flow theory,the product market competition,accounting conservatism governance theory,governance theory literature study method and multivariate linear regression analysis method,illustrates the product market competition and accounting conservatism on degree of the influence of enterprises over-investment and path.The results show that:(1)there is a significant positive correlation between the degree of product market competition and the robustness of enterprise accounting;(2)product market competition is significantly negatively correlated with enterprises' excessive investment;(3)accounting conservatism is significantly negatively correlated with excessive investment of enterprises;(4)product market competition will weaken the governance effect of accounting conservatism on enterprises' excessive investment.Based on-the above research,this paper puts forward the following countermeasures:in the market competition circumstance,to correctly treat the product market competition,the relationship between accounting conservatism and its effect on corporate governance of excessive investment,create a fair competition market environment,exert product market competition in excessive investment management company of leading role;Strengthen the accounting conservatism,improve the quality of accounting information disclosure,so as to achieve the goal of overinvestment management;Meanwhile,management self-discipline and shareholder supervision should be strengthened.