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- W3125686936 abstract "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 macro-economic 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." @default.
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- W3125686936 date "2009-12-01" @default.
- W3125686936 modified "2023-10-17" @default.
- W3125686936 title "How does financial reporting quality relate to investment efficiency?" @default.
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- W3125686936 doi "https://doi.org/10.1016/j.jacceco.2009.09.001" @default.
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