Accounting Conservatism Will Change The Investment Efficiency Of Most Enterprises In The Different Environment

With the speedy development of our economy, the management of listed company all keen to invest large project, however, most are inefficient investment,whether business capital investment behavior is reasonable has attracted each enterprise shareholders’ and management’s attention also has gradually become the hotspot of economic study. What’s more, lots of research documents shows inefficient investment is caused by asymmetric information and agency problem,Accounting conservatism as one of basic principle for handling accounting issue which is ancient and rooted into heart, and it had been applied in enterprise for accounting practice for a long time, about several hundreds of years. It also shows the importance of accounting conservatism is in accounting practice. By using accounting conservatism, enterprise can somehow solve the asymmetric information and agency problem. Considering China is in the economic transition period, outside environment will definitely change the investment efficiency of most enterprise.Therefore, this article firstly studies the relationship between accounting conservatism and investment efficiency, and further studies their relationship in the different environment. Which come to a concluded that this article in way can help enterprise reduce the risk of investment inefficient, it can also provide experimental evidence and theoretical foundation to complete our institutional system environment, and rule the behavior of our government department. This article had combined theoretical analysis and empirical research, mainly found that:(1)inefficient investment as a common issue exist in the enterprise, accounting conservatism has a great effect on investment efficiency.(2)Business capital investment behavior is affected by its institutional system environment, When enterprise in the area with low government intervention level and high financial liberalization degree, accounting conservatism has promoting effect to enhance investment efficiency, meanwhile, poor intermediary market development and legal environment also affect the relationship between enterprise accounting conservatism level and capital investment efficiency. This research in a way helped the study of enterprise capital investment efficiency, also contribute to the intensive study of influence factor of investment inefficiency in our listed company.