NEXUS OF FINANCIAL REPORTING QUALITY AND INVESTMENT EFFICIENCY

被引：0
|
作者：
Irfan-Ullah [1 ]
Ayub, Usman [1 ]
Khan, Hashim [1 ]
机构：
[1] COMSATS Univ, Dept Management Sci, Islamabad, Pakistan
来源：
INTERNATIONAL TRANSACTION JOURNAL OF ENGINEERING MANAGEMENT & APPLIED SCIENCES & TECHNOLOGIES | 2020年 / 11卷 / 07期
关键词：
Asset side accruals quality; Liability side accruals quality; Earnings management; Adverse selection; Moral hazard; FOUNDING-FAMILY OWNERSHIP; EARNINGS MANAGEMENT; FIRM; CONSERVATISM; BOARD;
D O I：
10.14456/ITJEMAST.2020.134
中图分类号：
O [数理科学和化学]; P [天文学、地球科学]; Q [生物科学]; N [自然科学总论];
学科分类号：
07 ; 0710 ; 09 ;
摘要：
In this paper, the bi-directional relationship between financial reporting quality and investment efficiency is examined. Prior studies suggest that financial reporting quality improves the investment efficiency of firms. Using firm-level data one measure of financial reporting quality namely liability side accrual quality confirms this association. Further, we find that firms involve in accruals earnings management thereby decreasing financial reporting quality in an attempt to conceal firm performance from outsiders. Our measure of investment efficiency excessively predicts financial reporting quality. This relationship can be seen for both proxies of financial reporting quality-asset side accruals quality and liability side accruals quality. Results on the two-way relationship between variables are robust even when we use total accruals quality as an alternative proxy of financial reporting quality. (C) 2020 INT TRANS J ENG MANAG SCI TECH.
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页数：12
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