The Research Of The Influnence Of Accounting Information Quality On Inefficiency Investment At The Enterprise Level

Capital investment and capital financing are two aspects in capital operation, have significant impact on the enterprise management. Investment as an important strategic decision has huge impact on enterprise. From observing national bureau of statistics web site published data, the average investment efficiency of China’s published company is low. It existed a phenomenon called inefficient investment. Inefficient investment is one specific kind of description of capital investment. Agency conflicts and information inequality are the main reason of enterprise inefficient investment. Inefficient investment brings significant risk of shareholders’invest. Therefore, creating a reasonable scientific management system will balance the conflicts between each different agency and solve the information inequality issue. Because of its administer and pricing function, accounting information been seen as a key procedure to mediate agency conflicts and information inequality issue. It makes accounting information quality an indispensable component for fixing enterprise inefficient investment. Among Chinese scholars, current research and study on public company inefficient investment are mostly focusing on stock ownership structure, inside cash flow and finance etc. Not many scholars focus on the impact form accounting information quality aspect, and how it impacts on enterprise inefficient investment.This article given a running commentary on how accounting information quality impacts on enterprise investment efficiency based on general study from global scholars. On top of fundamental theory of information inequality, adverse selection and agency issue, systematically apply an integration of regulated research and empirical approach to analysis the accounting information quality impact on enterprise inefficient investment. As the same time, this article provides three assumptions on top of the supporting theory:variables based on influential assumptions; revising old study model; applying statistical profits and accounting stability index to value accounting information quality and valuing inefficient investment status based on Richardson Model with variable index that’s been necessary for explanation. Choosing stocking market of Shanghai and Shenzhen A-share manufacturing public companies in 2011-2014 period as example. Using the methodologies like descriptive statistical analysis, relative analysis and returning analysis to discuss the fundamental data characteristic, relationship among those elements and accounting information quality impact on enterprise inefficient investment. According to these methodologies, verifying that the quality of accounting information has direct impact on enterprise inefficient investment status. At the same time, compare to state-owned enterprise (SOE), accounting information quality is easily to impact on non-SOE inefficient investment. Then providing advises that based on empirical approach result as a reference to improving China’s enterprise inefficient investment behavior regulation.