TITLE:
The Approach of Accounting Information Quality on Investment Efficiency—Empirical Evidence from Chinese Listed Companies
AUTHORS:
Chunyan Ren
KEYWORDS:
Accounting Information Quality, Investment Efficiency, Over-Investment, Under-Investment
JOURNAL NAME:
Theoretical Economics Letters,
Vol.6 No.2,
April
28,
2016
ABSTRACT: This paper studies the approach
of accounting information quality on investment efficiency, from the context of
the Chinese reality system. The empirical results confirm that the proxy for accounting
information quality is negatively associated with over-investment or
under-investment. Furthermore, there is a negative association between the
quality of accounting information and the future investment for firms
classified as over-investment and a positive association between the quality of
accounting information and the future investment for firms classified as under-investment.
The results suggest that the improvement of accounting information quality
helps to restrict companies from over-investment and helps the companies to
mitigate under-investment.