DOES ACCOUNTING COMPARABILITY MATTER TO THE EFFICIENCY OF A FIRM'S INVESTMENT? EVIDENCE FROM CHINA'S A-SHARE MARKET

被引:0
|
作者
Lin, Zhenxing [1 ]
Wang, Jingran
Huang, Chintan [2 ]
Chen, Lin [1 ]
Li, Peigong [1 ,3 ]
机构
[1] Shanghai Lixin Univ Accounting & Finance, Sch Accounting, Shanghai, Peoples R China
[2] Ming Chuan Univ, Dept Business Adm, Taipei, Taiwan
[3] Sogang Univ, Sogang Business Sch, Seoul, South Korea
来源
关键词
Accounting comparability; China's A-share market; investment efficiency; overinvestment; underinvestment; MANDATORY IFRS ADOPTION; PRIVATE FIRMS; AGENCY COSTS; CASH FLOW; INFORMATION; DISCLOSURE; QUALITY; PEER;
D O I
10.1142/S021759082240001X
中图分类号
F [经济];
学科分类号
02 ;
摘要
This study aims to investigate the role of accounting comparability in firm investment efficiency of firms in China. Using a sample of listed firms in China's A-share market from 2005 to 2016, this study empirically categorizes the firms into two groups based on overinvestment and underinvestment. After implementing several tests including those for collinearity and heteroskedasticity, the primary results of the empirical models show that accounting comparability can only improve the efficiency of a company's investment in terms of reducing the overinvestment and increasing the underinvestment through the impact of a financing constraint on the overinvestment and underinvestment. This study thus suggests that the Chinese authorities should take steps to ensure that firms increase the extent of their accounting comparability with other firms, thereby making their accounting statements more comparable not only in the same industry, but also in different industries in accordance with the official accounting regulations and by adopting the same definitions for accounting indicators.
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页数:18
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