Research About Impact Of Earnings Management On Investment Efficiency Of Listed Companies In China

Earnings management and investment efficiency has been the topic for years.Accurate accounting information has the governance effect on non-efficiency investment,while the enterprise earnings management behavior may hide the real operating performance, lower the quality of accounting information, mislead decision-makers to the judgment of the enterprise,and impact on investment efficiency.Therefore, this article explores the influence of earnings management on investment efficiency, and divides the efficiency of investment into the investment shortage and excess according to the Richardson model, and the path of the effects are also expounded in detail. This paper not only enriches the research of earnings management economic consequences, for the governance of the listed company of investment efficiency also provides certain reference significance.By analyzing 2012-2014 financial data of the Shanghai A-share, excluding some extreme value and missing values, the author finally adopts 2352 sample data. To develop the paper: first, by comparison with Jones model, getting the earnings management degree of the enterprise; secondly, according to the residual error of Richardson model to judge the non-efficiency investment degree, which is divided into under-investment and over-investment; finally, by adding some control variables,setting up the multivariate regression model between earnings management,investment efficiency under-investment and over-investment to explore the relationship to verify the hypothesis.Research results show that: first, non-efficiency investment of listed companies phenomenon is very common in China,especially embodied in the over-investment and under-investment; Second, earnings management behavior can cause non-efficiency;Third, there is a positive correlation between earnings management and over-investment or under-investment.Therefore, given the widespread earnings management of listed companies in China, the paper to some extent reveals another important reason to cause the non-efficiency investment.