The Empirical Study On Information Asymmetry, Investment And Financing

The research on information economics in the theory of investment and financing is one of the important topics of the academic research. The prime research on the theory of investment and financing assumes that the capital market is perfect and the traders are completely rational "economic man". However, the theory of information economics raises the concept of information asymmetry. The theory of information asymmetry assumes that the capital market is not perfect, and there exists the information asymmetry in the capital market. Furthermore, this asymmetry has an effect on the decisions of the investment and financing. In the process of the decisions on the investment and financing, information asymmetry does exist. In this situation, the ones who have information superiority can earn profit. On the other hand, the ones who are in the information disadvantaged will pay price for the information, or lose because of the lack of the information. Firstly, we do some outline on the basic theory and research from scholars at home and abroad of information asymmetry and investment and financing. Secondly, we put forward the research of the relation between information asymmetry and investment. At the same time, we do research on the relation between information asymmetry and financing. This paper not only enriches the theory of information asymmetry, investment and financing, but also has variety choices of investment and financing. In the meanwhile, this paper tell us how to make financing decisions, reduce the decision-making costs, make a plan to effective control of risk decision-making, and improve financing outcome as well. Overall, there is certain theoretical and practical significance for the decisions for investment and financing.The innovation point of this paper is to study investment and financing under the environment of information asymmetric. We put the information asymmetry, direction of investment and financing way in a single research framework. Therefore, we have set up a bridge for the connection between the information asymmetry, the efficiency of corporate investment and financing. This paper provides a richer choice of investment directions, the choice of the financing. So, we can have a more comprehensive understanding investment and financing choices in the face of different financing deficit. This paper tells us that in order to reduce the financing cost how to make financing their company’s investments and profit shortfalls. Overall, this article makes a theoretical guidance to improve the enterprise value.