How Does Financial Reporting Quality Relate To Investment Efficiency
DOWNLOAD
Download How Does Financial Reporting Quality Relate To Investment Efficiency PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get How Does Financial Reporting Quality Relate To Investment Efficiency book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
Financial Reporting Quality And Investment Efficiency
DOWNLOAD
Author : Rodrigo S. Verdi
language : en
Publisher:
Release Date : 2006
Financial Reporting Quality And Investment Efficiency written by Rodrigo S. Verdi and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006 with categories.
This paper studies the relation between financial reporting quality and investment efficiency on a sample of 38,062 firm-year observations between 1980 and 2003. Financial reporting quality has been posited to improve investment efficiency, but to date there has been little empirical evidence to support this claim. Consistent with this claim, I find that proxies for financial reporting quality are negatively associated with both firm underinvestment and overinvestment. The relation between financial reporting quality and underinvestment (overinvestment) is mainly driven by the innate (innate and discretionary) component of reporting quality. Further, financial reporting quality is more strongly associated with overinvestment for firms with large cash balances and dispersed ownership, which suggests that financial reporting quality mitigates information asymmetries arising from agency conflicts. However, I find mixed evidence for the hypothesis that financial reporting quality is more strongly associated with underinvestment for firms facing financing constraints. Finally, the relation between financial reporting quality and investment efficiency is stronger for firms with low quality information environments. Overall, this paper has implications for research examining the determinants of investment efficiency and the economic consequences of enhanced financial reporting.
How Does Financial Reporting Quality Relate To Investment Efficiency
DOWNLOAD
Author : Gary C. Biddle
language : en
Publisher:
Release Date : 2015
How Does Financial Reporting Quality Relate To Investment Efficiency written by Gary C. Biddle and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015 with categories.
Prior evidence that higher quality financial reporting improves capital investment efficiency leaves unaddressed whether it reduces over- or under-investment. This study provides evidence of both in documenting a conditional negative (positive) association between financial reporting quality and investment for firms operating in settings more prone to over-investment (under-investment). Firms with higher financial reporting quality also are found to deviate less from predicted investment levels and show less sensitivity to macroeconomic conditions. These results suggest that one mechanism linking reporting quality and investment efficiency is a reduction of frictions such as moral hazard and adverse selection that hamper efficient investment.
The Effect Of Financial Reporting Quality And Industry Expertise On Investment Efficiency Evidence From Taiwan
DOWNLOAD
Author :
language : en
Publisher:
Release Date : 2019
The Effect Of Financial Reporting Quality And Industry Expertise On Investment Efficiency Evidence From Taiwan written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019 with categories.
Determining The Impact Of Multiple Consecutive Years Of Financial Reporting Quality Issues On Investment Efficiency
DOWNLOAD
Author : Amanda L. Wilford
language : en
Publisher:
Release Date : 2012
Determining The Impact Of Multiple Consecutive Years Of Financial Reporting Quality Issues On Investment Efficiency written by Amanda L. Wilford and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012 with categories.
Does Financial Reporting Quality Relate To Suppliers Investment Efficiency
DOWNLOAD
Author : 郝培鈞
language : en
Publisher:
Release Date : 2011
Does Financial Reporting Quality Relate To Suppliers Investment Efficiency written by 郝培鈞 and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011 with categories.
Financial Reporting Quality And Labor Investment Efficiency
DOWNLOAD
Author : Boochun Jung
language : en
Publisher:
Release Date : 2014
Financial Reporting Quality And Labor Investment Efficiency written by Boochun Jung and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2014 with categories.
We examine whether accounting quality is associated with efficient investments in labor. Consistent with high quality accounting mitigating market frictions that lead to sub-optimal levels of investment, we find evidence that abnormal net hiring (measured as the absolute deviation from net hiring predicted by economic fundamentals) is negatively associated with accounting quality. These results are robust to a battery of sensitivity tests and controls for other relevant factors, including labor power and other contemporaneous investments. We further examine the channels through which accounting quality improves net hiring efficiency and provide evidence that high quality accounting reduces both over-investment in labor (over-hiring and under-firing) and under-investment in labor (under-hiring and over-firing). We also show that the effect of accounting quality on net hiring efficiency is particularly strong in highly unionized industries. Finally, we also document that abnormal net hiring is costly, in that it is associated with lower future profitability. Overall, our results suggest that accounting quality improves the efficiency of investments in labor, a key factor of production, and contribute to the emerging literature on the effects of accounting on firms' investment decisions.
Is The Higher Quality Financial Reporting Improves Csr Investment Efficiency And Future Financial Performance In Indian Perspective
DOWNLOAD
Author : Mr. Harshit Eric Williams
language : en
Publisher:
Release Date : 2020
Is The Higher Quality Financial Reporting Improves Csr Investment Efficiency And Future Financial Performance In Indian Perspective written by Mr. Harshit Eric Williams and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with categories.
This study searches for the role of financial reporting quality in disciplining managers' investments in corporate social responsibility (CSR) in Indian companies. While agency have similar kind of problems which relates to investment decisions, with respect to investment in CSR, the moral exposure problem that results in over-investment is likely exacerbated as CSR provides certain concealed benefits to managers that would not be anticipated from a typical investment. I have recognized that there is a positive relation between investment in CSR and future profitability for firms with high-quality financial reporting; whereas there is a negative relation between investment in CSR and future profitability for firms with low-quality financial reporting. In general, these outcomes has recommended that higher-quality financial reporting improves CSR investment efficiency by justifying moral helplessness, resulting in an investment in CSR that benefits stake holders by improving future financial performance.
The Effect Of Financial Reporting Quality On Corporate Investment Efficiency
DOWNLOAD
Author : Yiwei Dou
language : en
Publisher:
Release Date : 2018
The Effect Of Financial Reporting Quality On Corporate Investment Efficiency written by Yiwei Dou and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018 with categories.
We test for changes in investment efficiency around a shock to financial reporting quality--the adoption of SFAS No. 123R, which requires that employee stock option (ESO) costs be recognized rather than disclosed at fair value. We predict and find a reduction in underinvestment for firms heavily affected by the new standard, and that these firms exhibit a decrease in the bid-ask spread and an increase in new capital raised in the post-SFAS No. 123R period. The reduction in underinvestment is more pronounced for firms whose ESO estimates are more unreliable before SFAS No. 123R, for firms that are financially constrained, and for firms with more entrenched managers. These findings are consistent with recognition of ESO costs at fair value improving financial reporting quality, which in turn enhances investment efficiency through the mitigation of the adverse selection problem for underinvesting firms.
Financing Patterns Around The World
DOWNLOAD
Author : Thorsten Beck
language : en
Publisher: World Bank Publications
Release Date : 2002
Financing Patterns Around The World written by Thorsten Beck and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 2002 with Business enterprises categories.
Using a firm-level survey database covering 48 countries, Beck, Demirgüç-Kunt, and Maksimovic investigate whether differences in financial and legal development affect the way firms finance their investments. The results indicate that external financing of investments is not a function of institutions, although the form of external finance is. The authors identify two explanations for this. First, legal and financial institutions affect different types of external finance in offsetting ways. Second, firm size is an important determinant of whether firms can have access to different types of external finance. Larger firms with financing needs are more likely to use external finance compared with small firms. The results also indicate that these firms are more likely to use external finance in more developed financial systems, particularly debt and equity finance. The authors also find evidence consistent with the pecking order theory in financially developed countries, particularly for large firms. This paper--a product of Finance, Development Research Group--is part of a larger effort in the group to understand firms' access to financial services.
Financial Reporting Quality Investment Horizon And Institutional Investor Trading Strategies
DOWNLOAD
Author : Brian J. Bushee
language : en
Publisher:
Release Date : 2018
Financial Reporting Quality Investment Horizon And Institutional Investor Trading Strategies written by Brian J. Bushee and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018 with categories.
This paper provides evidence that financial reporting quality (FRQ) influences the holding costs of trading strategies. While prior research has focused on the benefits of investment strategies based on poor FRQ (i.e., larger returns due to a greater amount of private information), we examine whether poor FRQ imposes greater holding costs on certain trading strategies. We show that poor FRQ motivates sophisticated investors with short-term horizons to tilt their portfolios away from value stocks, whose returns are contingent on investors revising their beliefs about firm fundamental value, and toward past winner stocks whose future returns are realized more quickly. Poor FRQ also increases the length of time that institutions maintain large positions in value stocks. Our results imply that mis-valuations can be persistent when arbitrageurs perceive high holding costs from poor financial quality, even when they can see through the opaque financial disclosures.