The Research On Inefficient Investment Of Listed Companies Based On Accounting Conservatism

The investment is an important driving force for economic growth of a country, is also the main motivation for development and expansion of enterprise, and the important source of increasing the enterprise’s future cash flows, however, investment decision is one of the company’s major financial decisions, its level not only has an important impact on the company’s operating risk and profit level, but also directly affects the company’s investment efficiency and the promotion of enterprise value. At present, all countries in the world exist inefficient investment phenomenon in different degrees, but more common in our country and the situation is more serious, the main forms of inefficient investment are insufficient investment and excessive investment, however, excessive investment behavior is more serious than insufficient investment. Therefore, combined with the background of the system in China and the capital market environment, study on the investment behavior and efficiency problem of listed companies is important of practical significance.This paper takes governance mechanism of accounting conservatism as the starting point, selects2009-2011annual machinery and equipment manufacturing enterprises listed in Shanghai and Shenzhen two main board A shares as research sample, adopts qualitative analysis and quantitative analysis method, studies the correlation of accounting conservatism and investment behavior and efficiency of listed companies in our country, and on the basis of the research conclusion, puts forward policy suggestions to give play to governance mechanism of accounting conservatism and govern effectively inefficient investment. This paper is specifically divided into three levels:first of all, review of the related theories and analysis of the influence of accounting conservatism on corporate investment behavior based on these theories, this is the basis of empirical research in this paper; secondly, on the basis of theoretical analysis, combined with our country’s institutional environment and relevant research achievements of scholars at home and abroad, put forward the hypothesis and carry on empirical test; finally, according to the results of the empirical analysis, reach the conclusion of the study and on the basis of the research conclusion, put forward policy suggestions. This paper’s research finds:accounting conservatism will stem excessive investment in certain circumstances, but in certain circumstances, accounting conservatism will also aggravate insufficient investment. In addition, in manufacturing listed companies, substantial shareholder is state-owned or not has significant influence on accounting conservatism’s function exertion, compared with non-state-owned enterprises, state-owned enterprises with more conservative accounting policies have a stronger inhibitory action on excessive investment, but have a weaker deterioration action on insufficient investment. The research target and significance of this paper is looking for new ideas for governing inefficient investment of our country’s listed companies, to optimize investment behavior of listed companies in our country and improve listed companies’investment efficiency.