Conditional conservatism and investment efficiency under a state ownership environment: Further evidence from China

IF 3.3 Q1 BUSINESS, FINANCE

Journal of International Accounting Auditing and Taxation Pub Date : 2023-09-28 DOI:10.1016/j.intaccaudtax.2023.100581

Sun Liu , Jie Zhang

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引用次数: 0

Abstract

Prior studies on developed markets have documented that conditional conservatism is positively associated with investment efficiency. In this study, we investigate whether this association can be shaped by the unique institutional environment—state ownership of firms and banks—in China. First, we examine the association between conditional conservatism and investment efficiency in China’s corporate setting and find that conditional conservatism can reduce (facilitate) investment in listed firm settings in which overinvestment (underinvestment) is most likely, and thereby improve investment efficiency. Further analyses reveal that the effects of conditional conservatism on improving investment efficiency are less pronounced in state-owned enterprises (SOEs) and firms with higher percentages of loans borrowed from state-owned commercial banks. Moreover, we find that these effects are more pronounced in non-SOEs than in SOEs after the implementation of the 2008 stimulus program, which resulted in a large increase in bank borrowing by Chinese firms. Overall, this study provides new evidence on how the effects of conditional conservatism on investment efficiency can be shaped by concentrated state ownership and politically driven lending in China.

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国有制环境下的条件保守性与投资效率——来自中国的进一步证据

先前对发达市场的研究表明，条件保守性与投资效率呈正相关。在这项研究中，我们调查了中国独特的制度环境——企业和银行的国有制——是否会形成这种联系。首先，我们考察了中国企业环境中条件保守主义与投资效率之间的关系，发现条件保守主义可以减少（促进）在最有可能过度投资（投资不足）的上市公司环境中的投资，从而提高投资效率。进一步的分析表明，条件保守主义对提高投资效率的影响在国有企业和从国有商业银行借款比例较高的企业中不太明显。此外，我们发现，在2008年刺激计划实施后，这些影响在非国有企业中比在国有企业中更为明显，这导致中国企业的银行借贷大幅增加。总的来说，这项研究提供了新的证据，证明中国集中的国有股权和政治驱动的贷款如何影响条件保守主义对投资效率的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Accounting Auditing and Taxation BUSINESS, FINANCE-

CiteScore

4.50

自引率

3.80%

发文量

期刊介绍： The Journal of International Accounting, Auditing and Taxation publishes articles which deal with most areas of international accounting including auditing, taxation and management accounting. The journal''s goal is to bridge the gap between academic researchers and practitioners by publishing papers that are relevant to the development of the field of accounting. Submissions are expected to make a contribution to the accounting literature, including as appropriate the international accounting literature typically found in JIAAT and other primary US-based international accounting journals as well as in leading European accounting journals. Applied research findings, critiques of current accounting practices and the measurement of their effects on business decisions, general purpose solutions to problems through models, and essays on world affairs which affect accounting practice are all within the scope of the journal.