Research On The Relationship Between The Earnings Management And The Investment Efficiency Of Nonferrous Metal Industry Listed Companies In China

In recent years,the nonferrous metals industry of China is developing rapidly,the scale expands unceasingly,and production capacity have been improving,but its investment inefficiency problem is also growing,in order to guarantee the sustainable development of the industry,it is necessary to clear the influencing factors and improve the efficiency of industry investment.As is known to all,earnings management has always been one of the research focus in the field of accounting,and it is the topic of domestic securities market,earnings management is the result of separation of ownership and management in corporations.Therefore,earnings management behavior will lead to information asymmetry between investors and managers,management is based on the principle of maximize their own interests,in the process of enterprise,they make the investment decisions against enterprise benefit maximization principle,it will increase the risk of investment,increase the enterprise agency cost,and deteriorating financing constraints,which affect corporate investment efficiency.Previous research results,the paper according to the securities regulatory commission issued “industry classification guidance of listed companies”,which is a standard to select the 73 listed companies of the non-ferrous metal industry in Shanghai and Shenzhen stock exchange from 2008 to 2015 as the initial sample,and processing it in Excel,the paper use the extended Jones model,Roychowdhury model and Richardson model to calculate accrual earnings management level,real earnings management level and investment efficiency.And introduced the total return on assets,asset turnover,operating activities cash flows,total assets of the natural logarithms and asset-liability ratio as control variable for the regression analysis,in the research of the relationship between earnings management level and the investment efficiency,the final result shows that: the level of earnings management and over-investment of the non-ferrous metal industry have a negative correlation,the level of earnings management and under-investment of the non-ferrous metal industry have a negative correlation,it shows that the earnings management will increase the investment efficiency;Earnings management and investment efficiency have a negative correlation,and the level of real earnings management have a negative correlation with investment efficiency,it shows that the way of earnings management will not affect its relationship with the investment efficiency.Accordingly,the paper concludes that earnings management level of the non-ferrous metal industry will leads to inefficient investment problems,and will give rise to serious impact on the sustainable development of enterprises,therefore,we must take effective measures promptly to curb the earnings management behavior of enterprise.