Research On The Corporate Investment Behavior Under The Background Of Accounting Standards Reform

With the economic and financial globalization,the world capital market is being kept on transacting,which leads to our country’s market-oriented economy reforms one after another.However,such a competition is more a rules competition than the products competition or a technical competition,i.e.a competition of setting rules or participating in rules formulating.Furthermore,as an international business language,accounting is more and more important in the globalization process;and the internationalization of accounting standards,which is mainly for regulating the accounting information,is on its way.Therefore,the convergence of accounting standards in the world(included China)is conformed to this trend.And under the above circumstance,Chinese enterprises should do two things better:one is for being "larger" quickly by means of capital operation in capital market,which can help enterprises accumulating more operating capital;another is being more "stronger" efficiently by increasing accounting’s role in enterprises operation and management,which can improve the business performance by developing corporate investment behavior and its efficiency.In theoretically,Zeff’s theory of economic consequences(1978)supported an expansive study on accounting standards reform’s effects research;and William&Scott(1977)discussed the economic consequences in depth on the views of contracts,which provided a broad research field for revolution effects of accounting standard reform.From the perspective of information quality,Biddle&Hilary(2006)and some scholars studied and tested that improve the accounting information quality was useful for promoting corporate investment efficiency in the background of accounting standard reform;however,the accounting standards reform’s influence on corporate investment behavior should be more.As Ernst&Young(EY)said that accounting standards reform’s effect is not only on financial reports,but also on corporates’ operating strategy,risk management and internal control etc.in 2007;PricewaterhouseCoopers(PwC)also declared that the ideas and impacts of accounting standards reform should be challenged enterprises’ operation ideas,business management and some decisions etc.in 2010.As one of financial behaviors in enterprises,investment is closed to accounting;and the economic consequences of accounting standard reform should be affected the corporate investment behavior,which included some short and direct effects,and some indirect and complicated effects.From the existed research,accounting standard reform has many contacts with corporate investment behavior and its influence factors,which provided medium for accounting standards reform’s effect on corporate investment behavior and the importance of it is being paid attention by some scholars,but is not enough.In fact,from the characteristic of thoroughness and revolutionary of current accounting standard and its implementation for years,it is a good opportunity for studying and testing accounting standard reform’s effect on corporate investment behavior and for finding and summarizing some of its trend features.Therefore,started from capital operation and combined with our accounting standard reform’s characteristics of accounting idea changes,this paper construct an impact path of accounting standard reform on corporate investment behavior,analysis its specific effects and test the influence of accounting standards reform on capital operation and on investment behavior in enterprises,which is worth studying and exploring.The chapters of this paper are as follows:chapterl is "introduction",which states the research background and question promotion,related definitions,research importance and objectives,research thoughts and contents,technical routes and research methods,research innovation and values;chapter2 is "literature review",which reviews literatures of accounting standards reform and corporate investment behavior comprehensively and systematically combined with the perspective of capital operation;chapter3 is the section of "basic theories",which searches for logical relation of basic theory of economic consequence,institutional change and path-dependence to this research,i.e.the relation of accounting standard reform,capital operation and corporate investment behavior;chapter4 is section of "theoretical analysis",which constructs impact path of accounting standards reform on corporate investment behavior based on the capital operation influence,and discuss its specific effects in further;chapter5 to chapter7 is "empirical testing" section,which tests accounting standards reform’s effects on the choice of corporate investment,on the structure change of corporate investment,and on the efficiency of corporate investment from perspective of capital operation;chapter8 is "research conclusion and suggestion",which summarizes main conclusions and inspiration,proposes some related suggestion moreover,and put forwards future research based on some shorts in this paper in the end.According to above thoughts and structure,this paper got following conclusions:Conclusion1:from the strategy level,accounting standards reform could promote the capital operating strategy,which influences the choice of corporate investment methods.It is known that accounting standard reform is a mandatory institutional change from top to bottom,and its impact on increasing the accounting information quality would relieve the agency conflicts and reduce the trading cost under the modern property system in enterprises.Therefore,the great consequences of accounting standard reform could affect capital operating strategy and the choice of investment behavior.Conclusion2:from the management level,current accounting standard could lead to the adjustment of capital structure,which makes the corporate investment structure change together.The enterprises operation is a cyclical process,therefore,the consequence of accounting standard reform will be deepening and confirming.And for managers,in this cyclical process,they could keep on managing the capital operation and corporate investment with accounting information.Therefore,accounting standards reform’s consequence involves the effect on capital management and investment behavior.Moreover,capital allocation is a key of capital management,which is the same as that optimize the investment structure is importance for investment management.And it is a good way to make research design for above empirical test from the perspective of capital structure and investment structure.Conclusion3:from the working level,the accounting standard reform will promote the post-efficiency of corporate investment behavior for the realization of capital operation’s objectives.As the financial accounting report is not only the neutral technical information,but can make its users reacts differently,it will lead to an important effect of accounting standards reform on capital operation and investment efficiency.Such influence generally reflected by the operation results such as increasing investment efficiency and capital operation effectiveness,such as ROE,which is the key indicator of capital operation and corporate investment behavior.Conclusion4:in general,capital operation is an important impact path of accounting standards reform on corporate investment behavior,which is a comprehensive conclusion from above 3 conclusions.That is to say,accounting standards reform will promote the enterprises changed for capital operation and then influence the corporate investment behavior.As the theoretical analysis in this paper,accounting standard reform represented the change of accounting ideas,which will lead to a change of operation ideas and investment ideas with some impact factors of them,and influence the corporate investment behavior based on the change of enterprises operation from commodity operation to capital operation.The innovation of this paper could be as follows:First,different from existed study on consequence of accounting standards reform,this paper broads the classic foundation theory of this field,especially uses path-dependency theory with classic basic theories,such as economic consequence,asymmetrical information,institutional economic,etc.,which provided better foundation for theoretical analysis.With the above theories,this paper constructs the impact path of accounting standards reform’s effect on capital operation and investment behavior in enterprises,analyses the mechanism of their action,and forms main research ideas and thoughts.Second,on the basis of current accounting standard changes,this paper summarizes its three main transformations,i.e.the transformation from accountability to decision usefulness,the transformation from income statement to balance sheet,the transformation from costs to fair value.Consequently,this paper analyses these transformations will produce what impacts on corporate investment behavior in the view of capital operation.Furthermore,it will be found that with different management levels in enterprises,accounting standards reform will influence on investment method,investment structure and investment efficiency by the impact path of capital operation.Last,the studies on the relationship between accounting standards reform and capital operation or corporate investment behavior are not very much;and the studies on the relationship among them are even less.Therefore,on the basis of these limited references,this research builds paths for accounting standards reform impacting on corporate investment behavior on the perspective of capital operation and analyses the mechanism these paths.Moreover,the empirical research design of this paper is based on the international present research.In conclusion,this paper chould make a contribution to the interdisciplinary subjects of above study fields.