Abstract
Most of the existing studies on the impact of disclosure quality of listed companies on the investment efficiency of enterprises are based on the static level, and the article investigates the evolution of disclosure quality on the investment efficiency of enterprises from the dynamic level by dividing the life cycle of enterprises. Taking the data of Shenzhen civil engineering companies from 2013-2017 as the research sample, it uses multiple regression analysis to empirically test the impact of disclosure quality of listed companies on the investment efficiency of enterprises at different life cycle stages. The results show that when no distinction is made between life cycle stages, high quality disclosure can significantly inhibit the inefficient investment behavior of firms; in the growth and maturity samples, high quality disclosure can significantly inhibit underinvestment and overinvestment; in the recessionary samples, high quality disclosure can significantly inhibit underinvestment and has no significant effect on overinvestment.
Highlights
The investment decision is the starting point and core content of the enterprise financial decision making, and the current research on the influencing factors of enterprise investment efficiency and other issues has been the hotspot of research of domestic and foreign scholars
This paper focuses on the impact of disclosure quality on investment efficiency at different life cycle stages and the following model is developed to test the proposed hypothesis based on the previous research hypothesis
In addition to the quality of information disclosure of listed companies will have an impact on the investment efficiency of the company, other factors will affect the investment efficiency of the company, in the selection of control variables, this paper refers to the relevant literature and selects the return on total assets (ROA), gearing ratio (Lev), asset turnover rate (SAR), growth (Growth), size (Size), management expense ratio (MAR), equity concentration (Top), and own cash flow (CF)
Summary
The investment decision is the starting point and core content of the enterprise financial decision making, and the current research on the influencing factors of enterprise investment efficiency and other issues has been the hotspot of research of domestic and foreign scholars. Information asymmetry will hinder enterprises in the financing process, resulting in underinvestment; agent conflict will make the investment decision in the hands of management, resulting in the phenomenon of overinvestment. In the research field of the quality of corporate information disclosure, most domestic and foreign scholars are conducting research from a static perspective, and almost no research is conducted from the dynamic perspective of corporate life cycle. This paper mainly investigates the role mechanism of information disclosure quality on corporate investment efficiency in different life cycle stages through the study of Shenzhen civil engineering companies, enriches the economic consequences of information disclosure quality, broadens the study of the dynamic influencing factors of corporate investment efficiency, and provides reference for the governance of non-efficient investment and investor decision-making
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