Research On The Relationship Of Accounting Information Quality And Investment Efficiency

MM model has made the initiative study on the decision of enterprises' investment and financing. Therefore, many foreign scholars have put forward the theory about which factors influence corporate investment decision. The domestic scholars also research the influence factors of corporate investment behavior, such as the internal cash flow, shareholder structure, and financial development. However, but few study the relationship between financial reporting quality and corporate investment, especially about the influence of earnings quality to investment efficiency.From the respective of the accounting information quality, this paper analyzes whether accounting information quality influences corporate capital behavior. Especially, it investigates how earnings management influences investment efficiency of China's listed companies. The findings are as follows:as the improvement of the accounting information quality, the moral risk and adverse selection can be reduced, so it can help improve the current investment efficiency.The research indicate that now under the current institutional environment in China, which can't supply a strong protection for investors, higher earnings quality can alleviate agency cost problem and improve corporate investment decision making. There findings not only help understand and expand the existing research on corporate investment behavior, but also have realistic and theoretical implications to China's companies' investment efficiency.This paper consists of five chapters, and the main contents are as follows:The first part is the literature review about investment efficiency and accounting information quality. And basing on the current literature we have, this paper try to analyze the relationship between the investment efficiency and accounting information quality.Then the paper tries to give some theoretical evidence that accounting information can improve the investment efficiency and the process of decision-making. Besides, it also provides measurements of accounting information quality and investment efficiency.Then the paper does the positive analysis between the accounting information quality and investment efficiency. And it proves that high-quality accounting information can help improve the investment efficiency.Finally the paper summarizes the research findings of the paper, describes the conclusions, suggestions and limitations. It also points out the directions of future research.The conclusion is if the accounting information quality is improved, then the current investment efficiency can be improved too. It not only supplies some proof for the factors of investment efficiency, but also a new respective.