| China is currently in a new stage of upgrading and shifting development.Economic development pays more attention to growth quality and efficiency,and investment efficiency is receiving more and more attention in the process of economic development.As an emerging and rapidly developing industry,the effectiveness of its investment will significantly affect the current development speed.Studying the impact of earnings management of listed companies in the information technology industry on its investment efficiency will further provide a new direction for the current development of the information technology industry and improve the investment efficiency of listed companies in the information technology industry.Accounting information is not only the historical information of business activities,but also the useful information of investors ’ later business activities.When the separation of ownership and management,managers have control of the company,its behavior is not reasonable supervision,managers inevitably to earnings management manipulation of accounting information to maximize their own interests,so that the quality of accounting information decline,increase the agency problem,financing costs increase,thus affecting the investment efficiency of enterprises.Earnings management distorts accounting information and reduces the effectiveness of accounting information.As an independent and objective supervision activity,internal audit can improve the level of accounting information disclosure,alleviate the agency and financing constraints caused by information asymmetry,and play an important role in corporate governance.This paper conducts research on both theoretical and empirical levels.Firstly,the relevant literature is reviewed.Based on the analysis of the theoretical basis of earnings management affecting investment efficiency,the theoretical framework of the relationship between accrual earnings management,real earnings management,investment efficiency and internal audit quality is formulated,and the research hypothesis is put forward.Next,the financial data of 279 listed companies in the information technology industry from 2017 to 2021 in Shanghai and Shenzhen stock markets were selected as samples to establish a regression model.Stata 14.0was used for data processing and empirical testing of the model to examine how earnings management affects investment efficiency.At the same time,this paper also studies the moderating effect of internal audit quality on the impact of earnings management on investment efficiency.Finally,the research conclusions are drawn,policy recommendations are put forward,and the limitations of this study are expounded.Empirical studies have found that accrued earnings management and real earnings management are significantly positively correlated with inefficient investment,that is,the higher the degree of earnings management,the lower the investment efficiency.Whether the enterprise implements accrual earnings management or real earnings management,it has a direct impact on the effectiveness of accounting earnings information,which in turn causes excessive investment or insufficient investment due to financing constraints.This paper introduces internal audit as a moderating variable into the model,and finds that high-quality internal audit can significantly inhibit the company ’s earnings management behavior,thereby improving the company ’s investment efficiency.This paper analyzes the moderating effect of internal audit quality on the impact of earnings management on investment efficiency,and finds that internal audit quality can reduce the negative impact of earnings management on investment efficiency.In view of the above research conclusions,this paper puts forward three suggestions.First,establish and improve the governance structure of enterprises,fundamentally inhibit the earnings management behavior of operators.A sound corporate governance structure can discover the earnings management behavior of the company ’s management,supervise and restrict the important decisions of senior managers such as directors in business activities,and help to improve the capital adequacy ratio and profitability of listed companies.The second is to strengthen the improvement of the internal control system of the enterprise,giving the internal audit department a certain power and status.The efficient operation of the internal audit institution can ensure the quality of accounting information provided to the outside world,so that external investors have a deeper understanding of the enterprise.If external investors believe that the company ’s prospects are good,they will bring more capital to the enterprise,and the opportunity for the enterprise to obtain funds will increase,thus reducing the phenomenon of insufficient investment in the enterprise.Third,all parties work together to improve the quality of accounting information disclosure,urge enterprises to disclose accounting information,and ensure quality,which can reduce the adverse selection and moral hazard caused by information asymmetry.This study deepens the understanding of the impact of different earnings management methods on the company ’s non-efficiency investment,broadens the research horizon of the investment efficiency of listed companies,and enriches the theoretical research on the company’s investment efficiency.At the same time,it studies the moderating effect of internal audit quality on the impact of earnings management and investment efficiency,and finds a new entry point for earnings management research.The conclusions of this paper can improve the internal governance environment of listed companies in China ’s information technology industry,inhibit the occurrence of earnings management behavior,ensure the scientific nature of investment decisions,and promote the improvement of investment efficiency. |
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