Earnings Transparency And Corporate Investment Behavior

At present,the leading idea of China's economic development has changed from an expansion type to a high-quality type.The high-quality development of the economy is inseparable from accounting information.Enterprise surplus is an important part of accounting information,and the quality of its disclosure has an important impact on the development of my country's capital market.Earnings transparency plays a decisive role in allocating resources to the market and the company's high-quality investment decision-making ability.Specifically,based on the theory of information asymmetry and the theory of limited attention of investors,this paper applies inductive deduction and mathematical analysis methods and starts from the classical dividend discount model to construct an analytical framework of the impact of earnings transparency on stock mispricing and enterprise investment.On this basis,the economic consequences of earnings transparency are studied systematically from the perspectives of stock mispricing,corporate investment and dynamic adjustment of capital structure.The main work and conclusions of this paper are as follows:1.Constructed an analytical framework for the impact of earnings transparency on stock mispricing and enterprise investment.Based on the theory of limited investor concern,we constructed two models of enterprise earnings around mean fluctuation and the trend change of enterprise earnings in line with markov process,and analyzed whether the change of enterprise earnings transparency would affect investors' judgment and asset pricing.Then in the presence of financing constraints of the enterprise situation,surplus transparency makes value judgment to the enterprise management and investors appeared difference,and the difference of information by management and investors to invest their own number,under the condition of this hypothesis,we construct the surplus transparency change on stocks mispricing,the influence of capital structure and corporate investment mathematical model,points out that management and investors in their expected utility maximization under the condition of enterprise surplus information transparency changes impact on the enterprise investment threshold.2.Based on the viewpoint of "limited attention",this paper analyzes the influence of enterprise earnings transparency on stock mispricing,and constructs a regression analysis model to test it.Based on the earnings transparency calculation model proposed by Barth(2013),this paper selected the data of Chinese stock market from 2002 to 2016,fitted the earnings transparency value of listed companies in China,and tested the impact of earnings transparency on stock mispricing.The results show that(1)earnings transparency is negatively correlated with stock mispricing.(2)the new accounting standards introduced in 2007 can positively adjust the effect of earnings transparency on stock mispricing.3.Under the background of high mispricing of stock in China's capital market,this paper explores the effect of earnings transparency on enterprise investment and tests the internal mechanism.The results show that :(1)earnings transparency has a significant positive impact on corporate investment;(2)stock mispricing can promote the positive effect of earnings transparency on corporate investment.Further research shows that the influence of earnings transparency on corporate investment is mainly realized through equity financing channels and creditor's rights financing channels,and creditor's rights financing channels are more significant.4.We studied the impact of corporate earnings transparency on corporate investment efficiency,and analyzed the role of stock mispricing in the relationship between them.The study found that the improvement of earnings transparency can effectively improve the investment efficiency of enterprises,and the mispricing of stocks can promote the positive effect of earnings transparency on the investment efficiency of enterprises.5.The essence of enterprise capital structure adjustment is the dynamic allocation of equity financing and debt financing.Earnings transparency affects enterprise investment through equity financing and debt financing.Based on this finding,we explore the impact of earnings transparency on the dynamic adjustment of enterprise capital structure.Based on the functional logic of financial asset allocation based on "bubble economy view",this paper finds that earnings transparency can affect the capital structure of enterprises by reducing agency cost,institutional cost and information risk premium.Stock mispricing can positively adjust the effect of earnings transparency on the dynamic adjustment of capital structure.The contributions and innovations of this paper include:1.This paper constructs a theoretical analysis framework of earnings transparency affecting enterprise investment.Based on the theory of information asymmetry and the theory of limited attention of investors,the theoretical framework USES mathematical analysis,game analysis and other methods to explain the economic principles and functions of earnings transparency affecting enterprise investment.2.Systematically analyzed the impact of enterprise accounting information on enterprise investment from the perspective of earnings transparency.At present,the impact of accounting information on enterprise investment at home and abroad is mainly focused on earnings management,classified change of earnings management and accounting robustness,etc.Few studies have conducted in-depth studies from the perspective of earnings transparency.Our study has widened the research boundary of the impact of accounting information on enterprise investment decision.