search query: @author Hilary, G. / total: 2
reference: 2 / 2
« previous | next »
Author: | Biddle, G.C. Hilary, G. Verdi, R.S. |
Title: | How does financial reporting quality relate to investment efficiency? |
Journal: | Journal of Accounting & Economics
2009 : DEC, VOL. 48:2-3, p. 112-131 |
Index terms: | financial reporting capital investment disclosure efficiency empirical research |
Language: | eng |
Abstract: | Previous studies that higher-quality financial reporting improves capital investment efficiency leave unaddressed whether it reduces over- or under-investment. This paper presents that financial reporting quality is associated with lower over- and under-investment. Firms with higher financial disclosure quality are also found to deviate less from predicted investment levels and show less sensitivity to macro-economic conditions. The results present that one mechanism linking reporting quality and investment efficiency is a reduction of frictions as like as moral hazard and adverse selection that hamper efficient investment. |
« previous | next »
SCIMA