The Impact Of Fair Value Measurement On Corporate Investment Efficiency

With the rapid development of the global economy and the improvement of people’s financial information quality requirements,traditional single accounting measurement methods can not meet people’s needs any more.The value of assets and liabilities measured by fair value accounting varies with the market situation.Compared with the historical cost measurement method,it can better reflect the true economic value of the measured objects,in other words,it shows stronger value correlation.However,due to the existence of incomplete markets and the abuse of discretion that may exist in fair value measurement,its reliability has been questioned.In order to standardize the application of the fair value measurement method,the Ministry of Finance formulated the “Accounting Standards for Business Enterprises No.39 —— Fair Value Measurement” on January 26,2014.The issuance of the new standard will guide and promote the application of the fair value measurement method.Investment is one of the three troikas that drive the economy.At the micro level,investment efficiency determines the survival of a company.At the macro level,investment efficiency determines the rise and fall of a country.However,relevant research shows that the problem of inefficient investment such as insufficient investment and over-investment is widespread in Chinese enterprises,and investment efficiency needs to be further improved.Starting with the selection of accounting measurement methods,whether the use of fair value measurement attributes can improve the efficiency of enterprise investment,this issue needs to be further studied.As an important part of generalized corporate governance,internal control plays a vital role in regulating the operation of enterprises and improving the quality of financial information.Then,will internal control quality have an impact on the investment efficiency of the company,and what effect will it have? And what is the role of internal control quality on the impact of fair value measurement on corporate investment efficiency? The discussion of this issue has certain theoretical and practical significance for improving corporate governance and investment efficiency.Based on the systematic review of the theory of fair value measurement,the theory of enterprise investment efficiency and the theory of corporate governance issues,combined with the latest achievements of relevant research at home and abroad,this paper uses the data of China’s A-share listed companies from 2009 to 2017 to conduct empirical research.,draw the following conclusions:(1)Fair value measurement can significantly inhibit the non-efficiency investment of enterprises and improve the investment efficiency of enterprises.Further distinguishing between over-investment and under-investment found that fair value measurement has a more significant inhibitory effect on under-investment.(2)Internal control can effectively inhibit the non-efficiency investment of enterprises and improve the investment efficiency of enterprises.Further distinguishing between over-investment and under-investment,found that internal control can significantly inhibit the two.From the analysis of the absolute value of the regression coefficient,the internal control has more significant inhibition on investment.(3)Internal control plays a positive role in promoting the impact of fair value measurement on the investment efficiency of enterprises.By grouping regression according to the quality of internal control,it is found that compared with the low internal control quality group,when the internal control quality of the enterprise is high,the fair value can significantly inhibit the non-efficiency investment of the enterprise.It shows that strengthening the internal control construction of enterprises can promote the investment efficiency of enterprises both directly and indirectly.