Study On The Quality Of Information Disclosure And Companies’ Inefficient Investment

The main content of the modern enterprise financial activities including the investment decisions, financing decisions and dividend distribution decision three major decision, in which the enterprise has a close relationship with the enterprise investment decision value of ascension is the embodiment of enterprise development strategy. MM theory is that in a perfect capital market, without considering the company income tax when the enterprise investment decision has nothing to do with capital structure, only depends on the net present value(NPV) projects. But in the real world, there is no perfect capital markets, especially at present our country is in economic transition period, asymmetric information and agency problem is more serious, Public Companies are widespread phenomenon of investment decision is not scientific. Existing literature mainly studied from corporate governance, ownership structure, debt financing, free cash flow, etc, the efficiency of the enterprise investment management role, and it is the part of the literature research information disclosure quality influence on the efficiency of investment, but this kind of research is only one-sided considering the mandatory disclosure of financial information, ignore the voluntary disclosure of financial information’s impact on the efficiency of investment. Mandatory disclosure and voluntary disclosure of information disclosure quality how to affect the efficiency of investment is still an open question. Released based on the Shenzhen stock exchange listed company information disclosure evaluation results as indicators of all the quality of information disclosure, in the product market competition under the background of our country, respectively, to study the quality of information disclosure, product market competition affect the efficiency of investment, deepen the analysis of the product market competition is to strengthen the information disclosure quality inhibition efficiency of the enterprise investment.This paper first generalizes the related literature, and then based on the information asymmetry theory, principal-agent theory and the efficient market hypothesis, to analyze the causes of the efficiency of investment, and theoretically expounds the product market competition, the relationship between information disclosure quality and the efficiency of investment. Based on the Shenzhen stock exchange in 2010-2013 of 2822 set of empirical data of listed companies as research samples,including excessive investment sample for 1121, inadequate investment in the number of samples is 1701, use Herfindahl-Hirschman Index(HHI) as indicators of product market competition, released by the Shenzhen stock exchange listed company information disclosure evaluation results as substitution variables in the quality of information disclosure, to Richardson(2006) model, the absolute value of residuals as a measure of efficiency of investment.In this paper, the research results show that;(1) the high quality of information disclosure quality has governance effect to the efficiency of investment;(2) the product market competition has governance effect to enterprise excessive investment, but the enterprise investment insufficient relief is not obvious;(3) Product market competition to strengthen the information disclosure quality governance effect of excessive investment of the enterprise, but the quality of information disclosure lack of business investment, there is no significant role in promoting.At the end of the paper from the perfect corporate governance mechanism, perfecting the information disclosure system, strengthen information disclosure violation penalties, strengthen the supervision of information disclosure external audit and specification product market competition, the five aspects put forward policy Suggestions.