دانلود رایگان مقاله انگلیسی کیفیت اطلاعات حسابداری، کارایی حکومتی و انتخاب سرمایه گذاری - الزویر 2016

ABSTRACT

This paper examines the relationship between accounting information quality and capital investment choice from the perspective of accounting information’s governance function. Measuring capital investment choice as the correlation of growth of operating income between company and industry, this paper investigates whether and to what extent companies focus on their core business. The results show that the higher the quality of publicly listed firms’ accounting information, the stronger that correlation, particularly when the corporate governance of the listed company is poor. The findings imply that accounting information quality can thus optimize the capital investment choice, which complements and strengthens the functioning of corporate governance. Hence, regulators should pay more attention to the market’s power to supervise the behavior of listed firms, improve the governance functions of accounting information and increase the efficiency of capital allocation.

7. Conclusion

This paper examines whether and how high-quality accounting information can push management to optimize the capital investment choice of listed firms. This is a very important issue. Addressing this issue can help researchers to realize the governance functions of accounting information. The empirical results show that the higher the accounting information quality is, the higher the correlation and synchronicity of operating income growth between the listed firm and its industry. Moreover, the relationship between accounting information quality and capital investment choice is more pronounced when the corporate governance environment is poor. These results imply that high-quality accounting information serves an important governance role, which can supervise and push management to optimize capital investment choices, and finally maximize stockholders’ interests.

This paper has several important contributions. First, this paper provides new empirical evidence in a developing capital market. Second, this conclusion implies that regulators need to build a transparent and reliable information environment to allow accounting information to play an effective role to push listed firms to focus on their core business, optimize firms’ capital investment choices, and finally increase resource allocation efficiency. Finally, this paper can also help researchers to better understand and realize the governance role of accounting information, and push them to investigate the other role of accounting information deeply and broadly.