Research On Auditor Industry Expertise,accounting Information Quality And Corporate Investment Efficiency

Enterprise's financing decision-making management,investment management and profit distribution management are the three core parts of modern enterprise financial management.In these three parts,enterprise's investment decision-making management is related to the increase of enterprise income,the promotion of enterprise value and the maximization of shareholders' wealth.Effective investment decision can make corporations succeed in the fierce market competition.However,the phenomenon of over-investment and under-investment,which is the result of the financial constraint and the agency problem caused by information asymmetry widely exist in the reality.Since the Reform and Opening-up,the transformation and reform which is characterized by marketization and property rights reshaping makes our country's remarkable “economic growth miracle”.According to the statistics,since the Reform and Opening-up,China's economy has maintained a trend of high saving,high investment and high growth.However,such high-speed growth does not mean high investment efficiency,"high investment rate-low investment efficiency","duplicate construction","deviation of investment structure","macro-good-micro bad" and other issues are prevalent in the process of economic development in China.This ubiquitous problem of low investment efficiency has seriously affected the economic development of our country,and caused a great waste of social resources,so the problem of investment efficiency has been widely concerned by our scholars.Chinese scholars have explored the factors affecting investment efficiency and measures to improve investment efficiency through normative research or empirical research.Existing studies have found that accounting information and external independent auditing will affect the investment efficiency of enterprises to a certain extent.Auditor industry expertise can essentially reflect the quality of external independent auditing.So,will the quality of accounting information and auditor industry expertise affect the efficiency of enterprise investment? If the quality of accounting information and the professional expertise of auditors will affect the efficiency of enterprise investment,will this impact be positive or negative? What role does accounting information quality play in the relationship between auditor's professional expertise and enterprise's investment efficiency? These are the issues to be discussed in this paper.This paper aims to study the relationship among accounting information quality,auditor industry expertise and enterprise investment efficiency.The value of this paper lies in providing suggestions for enterprise management authorities to select suitable external independent auditors,improve the quality of accounting information and then improve the efficiency of enterprise investment.Firstly,this paper defines the concepts of accounting information quality,auditor industry expertise and enterprise investment efficiency and has a review of the related measurement method.Secondly,this paper reviews the research literature on accounting information quality,enterprise investment efficiency and auditor industry expertise at home and abroad,and makes a brief comment of the relevant literature.Thirdly,on the basis of principal-agent theory,information asymmetry theory and signal transmission theory,this paper makes a theoretical analysis of the impact of accounting information quality,auditor industry expertise on enterprise investment efficiency and the role of accounting information quality in the relationship between auditor industry expertise and enterprise investment efficiency,and puts forward three hypotheses of this paper.Next,this paper uses the standard deviation of regression residual of DD model to measure the quality of accounting information,industry market share method to measure audit industry expertise,Richardson model to measure the efficiency of enterprise investment,and the data needed in this paper are obtained from CSMAR database.Finally,descriptive statistics,Spearman's and Pearson's correlation analysis and linear regression analysis are carried out,and three hypotheses are verified by empirical methods,and the conclusion of this paper is drawn.In order to make the conclusion of this paper more robust,the robustness of this paper is tested.In the robustness test,this paper adopts the following two ways: first,changing the measurement basis of auditor industry expertise,replacing auditor industry expertise originally measured on the basis of auditor's total assets with auditor industry expertise measured on the basis of auditor's business income;second,constructing a virtual variable of auditor industry expertise.The conclusion of this paper has passed the robustness test,and the conclusion is robust.At the end of the article,the paper puts forward the policy suggestions from the two perspectives of constructing the evaluation system of accounting information quality and encouraging auditors' professional expertise.This paper draws the following conclusions:(1)the quality of accounting information will affect the investment efficiency of enterprises.Specifically,the higher the quality of accounting information,the higher the investment efficiency of enterprises.(2)Auditor industry expertise will also affect the investment efficiency of enterprises to a certain extent.Specifically,Compared with listed companies audited by auditors who do not have industry expertise,the investment efficiency of listed companies audited by auditors who have industry expertise is higher.(3)The quality of accounting information plays a full intermediary role between auditor industry expertise and enterprise's investment efficiency.Finally,this paper puts forward the following policy recommendations:(1)The enterprise management authorities should choose auditors with auditor industry expertise to audit the accounting information of enterprises to improve the quality of accounting information and decision-making value,and then improve the investment efficiency of enterprises.(2)Accounting firms should pay attention to the cultivation of professional expertise,build good image and high-quality brand of local firms,and then form a mature audit service system.(3)At the same time,our country should improve the relevant legal system,provide a good legal basis for the development of auditor industry expertise,continue to encourage accounting firms to become bigger,stronger and more professional,expand market share and improve market competitiveness.The innovation of this paper lies in: There are many literature on auditor industry expertise,accounting information quality and enterprise investment efficiency in academic circles at home and abroad,but most of them focus on the impact of auditor industry expertise on audit quality,audit pricing and behavior research of auditor industry expertise.Few papers study the impact of auditor industry expertise on enterprise investment efficiency.This paper not only verifies that auditor industry expertise and accounting information quality have a positive role in promoting enterprise investment efficiency,but also finds that auditor industry expertise affects enterprise investment efficiency by influencing accounting information quality through studying the relationship between auditor industry expertise and enterprise investment efficiency.In this paper,the study of corporate investment efficiency includes not only the impact of a single factor,but also the relationship between various factors.