2024年5月23日发(作者：潭怀寒)
THEACCOUNTINGREVIEW
Vol.86,No.4
2011
pp.1255–1288
AmericanAccountingAssociation
DOI:10.2308/accr-10040
FinancialReportingQualityand
InvestmentEfficiencyofPrivateFirms
inEmergingMarkets
FengChen
Ole-KristianHope
UniversityofToronto
QingyuanLi
WuhanUniversity
XinWang
TheChineseUniversityofHongKong
ABSTRACT:Priorresearchshowsthatfinancialreportingquality(FRQ)ispositively
ine
theroleofFRQinprivatefirmsfromemergingmarkets,asettinginwhichextant
researchsuggeststhatFRQwouldbelessconducivetothemitigationofinvestment
rstudiesshowthatprivatefirmshavelowerFRQ,presumably
esearchalsoshowsthat
FRQislowerincountrieswithlowinvestorprotection,bank-orientedfinancialsystems,
irm-leveldata
fromtheWorldBank,ourempiricalevidencesuggeststhatFRQpositivelyaffects
herfindthattherelationbetweenFRQandinvestment
efficiencyisincreasinginbankfinancinganddecreasinginincentivestominimize
onnectionbetweentax-minimizationincentivesand
thide
explicitevidenceinthisregard.
WehavereceivedvaluablecommentsfromSteveKachelmeier(senioreditor),WayneThomas,AlastairLawrence,two
anonymousreviewers,andworkshopparticipantsatTheUniversityofNewSouthWales,FloridaInternational
University,UniversityofToronto,UniversityofMinnesota,KULeuven,NorwegianSchoolofEconomicsandBusiness
Administration,SingaporeManagementUniversity,UniversityofNotreDame,SantaClaraUniversity,Universityof
NorthTexas,TempleUniversity,theUniversityofInternationalBusinessandEconomicsConference(Beijing),
AmericanAccountingAssociationInternationalSectionMidyearMeeting(Pasadena;BestPaperAward),Universityof
WaterlooConferenceonFinancialReportingQualityinEmergingMarkets,OklahomaStateUniversityAccounting
ResearchConference,EuropeanAccountingAssociationAnnualMeeting(Istanbul),CanadianAcademicAccounting
AssociationAnnualMeeting(Vancouver),andAmericanAccountingAssociationAnnualMeeting(SanFrancisco).
ProfessorHopegratefullyacknowledgesthefinancialsupportoftheDeloitteProfessorshipandProfessorLi
acknowledgesthefinancialsupportfromtheNationalNatureScienceFoundationofChina(NSFC-71072103).
Editor’snote:AcceptedbyStevenKachelmeier.
Submitted:January2010
Accepted:November2010
PublishedOnline:April2011
1255
1256Chen,Hope,Li,andWang
Keywords:investmentefficiency;under-andoverinvestment;financialreporting
quality;privatefirms;emergingmarkets;financingsources;taxincentives.
UCTION
T
hisstudyexaminestherelationbetweenfinancialreportingquality(FRQ)andinvestment
efficiencyforasampleofprivatefirmsinemergingmarkets.
1
Webelievethatsuchastudy
,andforemost,itisinherentlyinterestingto
examinesettingsinwhichthemitigationofinvestmentineffiussedin
detailbelow(seeSectionII),widelycitedpriorresearchconcludesthatprivatefirmshavelowerFRQ
thandopublicfitcommonexplanationofferedisthatprivatefirmsfacelessdemandfor
high-qualityfition,alonglineofresearchsuggeststhatthevalue
relevanceofaccountinginformationislowerinlessdevelopedcountriesthaninmoredeveloped
ingthesetwofindingsfrompriorresearch,thisstudyexaminestheimportanceof
accountinginformationinasettingthat,exante,isexpectedtobelessconducivetothemitigationof
lytradedfi,Biddleand
Hilary2006;HopeandThomas2008;McNicholsandStubben2008;Biddleetal.2009).
Second,notwithstandingthefactthatprivatefi,firmsthatarenottradedonpublic
stockexchanges)arethepredominantorganizationinmostcountries,littleisknownaboutprivate
firms’fiedwiththelargeliteratureondevelopedcountries’accounting
systemsandmanagers’reportingincentives,muchlessisknownabouttheroleofaccountingin
chonprivatefirmsfromemergingmarketsisvirtuallynonexistentdespite
itsimportancetointernationalorganizationssuchastheWorldBank,theInternationalAccounting
StandardsBoard(IASB),andothers.
Finally,ourstudycomplementsandextendspriorresearchontheeconomicconsequencesof
tiontoinvestigatingtheoveralleffectofFRQoninvestmentefficiency,
,high-qualityaccountinginformationislikely
moredesirableinmitigatinginformationasymmetryforprivatefirmswhentheyareinneedof
externalfi,weexaminewhetherprivatefirms’investmentefficiencyismore
sensitivetoFRQwhenthesefirmsseekbankfighpriorresearchhasexaminedthe
importanceoffinancingsourcesinothersettings,weareunawareoftestsrelatingfinancing
sources,FRQ,andinvestmentefficiencyforprivatefiare
unawareofstudiesthatexaminetheimportanceofbankfinancingrelativetoothernon-public
equityexternalfinancing.
Asoursecondconditionaltest,weconsidertheroleoftaxincentives,aspriorstudiesgenerally
ignoretaxconsiderations(HanlonandHeitzman2010).Ourstudycontributesbyexamininghow
taxincentiven
priorliterature,taxconsiderationsareespeciallyimportantforprivatefition,thereis
someindicationfromcross-countryanalysesthatconformityinbookandtaxreportingisassociated
withlowerqualityearnings(Atwoodetal.2010)andthatitdistortsinvestmentdecisions(Cummins
etal.1994).Asbook-taxconformityishigher,onaverage,inemergingmarketsthanindeveloped
countries,examiningfirmsinemergingmarketsmakesitpossibletoinvestigatewhetherthe
investment-FRQrelationstillexistsinanenvironmentwheretaxconsiderationsareimportantand
wherebook-taxconformitycoulddistortinvestmentdecisions(Cumminsetal.1994).
WeobtaindatafromtheWorldBank’sEnterpriseSurvey(WBES),amajorcross-sectional
fitabasehasbeenusedina
1
ConsistentwithBiddleetal.(2009),wedefineFRQastheprecisionwithwhichfinancialreportingconveys
informationaboutfirms’operations.
TheAccountingReview
July2011
2024年5月23日发(作者：潭怀寒)
THEACCOUNTINGREVIEW
Vol.86,No.4
2011
pp.1255–1288
AmericanAccountingAssociation
DOI:10.2308/accr-10040
FinancialReportingQualityand
InvestmentEfficiencyofPrivateFirms
inEmergingMarkets
FengChen
Ole-KristianHope
UniversityofToronto
QingyuanLi
WuhanUniversity
XinWang
TheChineseUniversityofHongKong
ABSTRACT:Priorresearchshowsthatfinancialreportingquality(FRQ)ispositively
ine
theroleofFRQinprivatefirmsfromemergingmarkets,asettinginwhichextant
researchsuggeststhatFRQwouldbelessconducivetothemitigationofinvestment
rstudiesshowthatprivatefirmshavelowerFRQ,presumably
esearchalsoshowsthat
FRQislowerincountrieswithlowinvestorprotection,bank-orientedfinancialsystems,
irm-leveldata
fromtheWorldBank,ourempiricalevidencesuggeststhatFRQpositivelyaffects
herfindthattherelationbetweenFRQandinvestment
efficiencyisincreasinginbankfinancinganddecreasinginincentivestominimize
onnectionbetweentax-minimizationincentivesand
thide
explicitevidenceinthisregard.
WehavereceivedvaluablecommentsfromSteveKachelmeier(senioreditor),WayneThomas,AlastairLawrence,two
anonymousreviewers,andworkshopparticipantsatTheUniversityofNewSouthWales,FloridaInternational
University,UniversityofToronto,UniversityofMinnesota,KULeuven,NorwegianSchoolofEconomicsandBusiness
Administration,SingaporeManagementUniversity,UniversityofNotreDame,SantaClaraUniversity,Universityof
NorthTexas,TempleUniversity,theUniversityofInternationalBusinessandEconomicsConference(Beijing),
AmericanAccountingAssociationInternationalSectionMidyearMeeting(Pasadena;BestPaperAward),Universityof
WaterlooConferenceonFinancialReportingQualityinEmergingMarkets,OklahomaStateUniversityAccounting
ResearchConference,EuropeanAccountingAssociationAnnualMeeting(Istanbul),CanadianAcademicAccounting
AssociationAnnualMeeting(Vancouver),andAmericanAccountingAssociationAnnualMeeting(SanFrancisco).
ProfessorHopegratefullyacknowledgesthefinancialsupportoftheDeloitteProfessorshipandProfessorLi
acknowledgesthefinancialsupportfromtheNationalNatureScienceFoundationofChina(NSFC-71072103).
Editor’snote:AcceptedbyStevenKachelmeier.
Submitted:January2010
Accepted:November2010
PublishedOnline:April2011
1255
1256Chen,Hope,Li,andWang
Keywords:investmentefficiency;under-andoverinvestment;financialreporting
quality;privatefirms;emergingmarkets;financingsources;taxincentives.
UCTION
T
hisstudyexaminestherelationbetweenfinancialreportingquality(FRQ)andinvestment
efficiencyforasampleofprivatefirmsinemergingmarkets.
1
Webelievethatsuchastudy
,andforemost,itisinherentlyinterestingto
examinesettingsinwhichthemitigationofinvestmentineffiussedin
detailbelow(seeSectionII),widelycitedpriorresearchconcludesthatprivatefirmshavelowerFRQ
thandopublicfitcommonexplanationofferedisthatprivatefirmsfacelessdemandfor
high-qualityfition,alonglineofresearchsuggeststhatthevalue
relevanceofaccountinginformationislowerinlessdevelopedcountriesthaninmoredeveloped
ingthesetwofindingsfrompriorresearch,thisstudyexaminestheimportanceof
accountinginformationinasettingthat,exante,isexpectedtobelessconducivetothemitigationof
lytradedfi,Biddleand
Hilary2006;HopeandThomas2008;McNicholsandStubben2008;Biddleetal.2009).
Second,notwithstandingthefactthatprivatefi,firmsthatarenottradedonpublic
stockexchanges)arethepredominantorganizationinmostcountries,littleisknownaboutprivate
firms’fiedwiththelargeliteratureondevelopedcountries’accounting
systemsandmanagers’reportingincentives,muchlessisknownabouttheroleofaccountingin
chonprivatefirmsfromemergingmarketsisvirtuallynonexistentdespite
itsimportancetointernationalorganizationssuchastheWorldBank,theInternationalAccounting
StandardsBoard(IASB),andothers.
Finally,ourstudycomplementsandextendspriorresearchontheeconomicconsequencesof
tiontoinvestigatingtheoveralleffectofFRQoninvestmentefficiency,
,high-qualityaccountinginformationislikely
moredesirableinmitigatinginformationasymmetryforprivatefirmswhentheyareinneedof
externalfi,weexaminewhetherprivatefirms’investmentefficiencyismore
sensitivetoFRQwhenthesefirmsseekbankfighpriorresearchhasexaminedthe
importanceoffinancingsourcesinothersettings,weareunawareoftestsrelatingfinancing
sources,FRQ,andinvestmentefficiencyforprivatefiare
unawareofstudiesthatexaminetheimportanceofbankfinancingrelativetoothernon-public
equityexternalfinancing.
Asoursecondconditionaltest,weconsidertheroleoftaxincentives,aspriorstudiesgenerally
ignoretaxconsiderations(HanlonandHeitzman2010).Ourstudycontributesbyexamininghow
taxincentiven
priorliterature,taxconsiderationsareespeciallyimportantforprivatefition,thereis
someindicationfromcross-countryanalysesthatconformityinbookandtaxreportingisassociated
withlowerqualityearnings(Atwoodetal.2010)andthatitdistortsinvestmentdecisions(Cummins
etal.1994).Asbook-taxconformityishigher,onaverage,inemergingmarketsthanindeveloped
countries,examiningfirmsinemergingmarketsmakesitpossibletoinvestigatewhetherthe
investment-FRQrelationstillexistsinanenvironmentwheretaxconsiderationsareimportantand
wherebook-taxconformitycoulddistortinvestmentdecisions(Cumminsetal.1994).
WeobtaindatafromtheWorldBank’sEnterpriseSurvey(WBES),amajorcross-sectional
fitabasehasbeenusedina
1
ConsistentwithBiddleetal.(2009),wedefineFRQastheprecisionwithwhichfinancialreportingconveys
informationaboutfirms’operations.
TheAccountingReview
July2011