| Accounting conservatism is an important feature of the quality of accounting information,it has great significance. Accounting conservatism can enable enterprises to timely loss recognition, avoid risks effectively, it is also an effective way to asymmetric information and agency costs of mitigation, it plays a vital role in business investment especially. Investment is an important part of business to operate efficiently, not only related to business financing,but also to the efficiency of capital allocation.To a certain extent,investment level of efficiency can affect the business risks and the intrinsic value of the enterprise, the enterprise’s survival and It has an important impact development. However, if the company can not effectively solve the problem of asymmetric information and agency problems, it will lead to excessive investment and insufficient investment, therefore, this paper principal-agent theory and asymmetric information theory, between accounting conservatism and Inefficient Investment conduct relations study on the mechanism of action of both rich content-related research, and the integrated use of a variety of research methods, its analysis and feasibility studies, in order to improve the reliability of the results.By combing research literature of accounting conservatism, investment efficiency, the relationship of both, theoretically studied accounting conservatism on the impact of investment efficiency, and on this basis, I put forward the hypothesis of this paper, while using 2012-2014 Shanghai and Shenzhen A-share listed companies as samples for empirical data analysis. Empirical Research using non-operating accrual measure the level of the enterprise’s accounting conservatism, using Richardson (2006) model to measure residual non-efficiency investment level, empirical study test the existence and prevalence of listed companies, the relationship between accounting conservatism and excessive investment, between accounting conservatism and underinvestment, reached the following conclusions:For excessive investment enterprises, accounting conservatism can play an inhibitory effect; for insufficient investment enterprises, accounting conservatism plays the role of deterioration. On this basis, combined with China’s capital market as a whole environment, I put forward recommendations for using accounting conservatism rationally and improving the efficiency of investment from macro and micro perspectives. |
