Research On Management Power、Accounting Conservatism And Inefficient Investment

In order to better respond to the economic development situation and promote the transition of my country’s socialist market economy and trade and investment from an extensive quantitative growth mode to an intensive quality growth mode,the central government proposed a supply-side structure of "three go,one drop,one supplement" The reforms clearly put forward the need to vigorously develop the real economy,promote the transformation and upgrading of the manufacturing industry,and enhance the effectiveness of industrial investment.However,in the actual capital operation process,disturbed by distorting factors such as information asymmetry and principal-agent conflicts,the problem of corporate capital mismatch has become a normal phenomenon,resulting in generally low efficiency of corporate capital use and serious problems of inefficient investment.As an important factor in the company’s internal governance,management power and accounting conservatism can independently or jointly act on the company’s investment decision-making mechanism,and have an impact on the company’s inefficient investment behavior.Therefore,under the background of my country’s current economic system and accounting system,it is of great significance to explore the effects of management power and accounting conservatism on inefficient investment.This article selects the leading industry with high industrial relevance and driving force in the national economy—high-end equipment manufacturing industry as the research object.It is based on the theories of principal-agent,information asymmetry,financing constraints,and management power.Starting from the root cause of efficient investment behavior,constructing a research framework,using a combination of theoretical analysis and empirical testing,to determine the relationship between management power,accounting conservatism,and inefficient investment in 164 listed companies in China’s high-end equipment manufacturing industry from 2012 to 2019.On the basis of logical deduction and analysis of the mechanism of action,the main variables and regression analysis model are constructed,and statistical analysis software such as EXCEL 2010,SPSS 19.0 and STATA 15.0 is used to empirically test the effects of the three.The study found that:(1)Most listed companies in the high-end equipment manufacturing industry have inefficient investment,and under-investment is more common;(2)Accounting conservatism has a double impact on the inefficient investment of listed companies in the high-end equipment manufacturing industry.Aspects,that is,higher accounting conservatism is negatively correlated with over-investment in high-end equipment manufacturing listed companies,and positively correlated with under-investment;(3)The relationship between management power and inefficient investment of high-end equipment manufacturing listed companies;(4)Management power plays a positive role in regulating the relationship between accounting conservatism and inefficient investment of listed companies in the high-end equipment manufacturing industry.Based on the above conclusions,this article will rationally use accounting conservatism,improve the information disclosure mechanism,scientifically allocate management power,broaden and innovate financing channels,and increase investment in technological innovation to manage and improve inefficient investment in high-end equipment manufacturing companies.make a suggestion.The main contributions of this paper are as follows: First,it broadens the research perspective of inefficient investment theory.Regarding accounting conservatism,management power,and inefficient investment,most of the existing literatures are related studies carried out individually or in pairs,and there are few studies on the relationship between the three.Based on the generation mechanism of inefficient investment,this paper integrates accounting conservatism,management power,and inefficient investment into the same research system,establishes a research and analysis framework of management power —accounting conservatism —inefficient investment,and systematically analyzes the relationship between the three Explore.Second,it enriches the research content of inefficient investment.According to the direction of inefficiency investment,this paper makes a detailed classification of its investment behavior,and more comprehensively explores the influence of the two corporate governance factors,management power and accounting conservatism,on the overall inefficiency investment phenomenon and different types of inefficiency investment behaviors.