Quality Of Accounting Information Disclosure,Institutional Investor Herd Behavior And Capital Market Allocation Efficiency

In recent years,domestic institutional investor has shown a quick increasing trend.They have become an important participator in Chinese capital market,which means their investing behavior is highly related with the stability of capital market.According to the related research,Chinese institutional investors existed herd behavior widely.Such actions lead the capital flowed with an unbalance situation,which will lower the capital allocation efficiency.As the tool of stabilizing capital market,accounting information plays a vital role.Improving the quality of accounting information disclosure could reduce the unsystematic informational degree between corporation and institutional investor.It also could decrease the transaction cost of arbitrageur and encourage more institutional investor be willing to keep searching investing information.The more information they get,the more reasonable decision they could make and the herd behavior will be less.Based on the mutual relationship among quality of accounting information disclosure,herd behavior and capital allocation efficiency,this study proposed that institutional investor herd behavior as mediating variable,will influence the relationship between quality of accounting information disclosure and capital allocation efficiency.To validate the view,this paper used the mediating effect of the inspection process,began with the relationship of the accounting information disclosure quality and capital market allocation efficiency based on the previous studies all over the world,and then empirically test the relationship of the three concepts.Empirical result shows that disclosure of accounting information quality is significantly positive related to the capital allocation efficiency.The improvement of accounting information disclosure quality can effectively inhibit the herding behavior of institutional investors and the decrease of institutional investors herd behavior degree can effectively promote the resource allocation efficiency of the capital market.Herding behavior of institutional investors has partial mediating effect,namely accounting information disclosure quality by affecting the herding behavior of institutional investors to influence the allocation efficiency of the capital market.According to the conclusions,this paper proposed several effective suggestions in terms of how to improve capital allocation efficiency at last.