Impacts of Earnings Quality and Debt Maturity on Investment Efficiency: Study Case in Vietnam

Abstract

<jats:p>The paper analyzed the impact of earnings quality (EQ), debt maturity, investment efficiency (IE) of listed companies on Vietnam stock market thanks to the regression methods of FEM, REM and GLS and data of enterprises in the period of 2010 - 2018. The research findings have shown that EQ and debt maturity have a positive impact on EI, in which EQ has a stronger influence than debt maturity. A review of both EQ and the debt maturity for overinvestment or underinvestment indicated a positive impact and the stronger impact on overinvestment. Based on the research findings, the authors have put forth several recommendations for investors, businesses and policy makers.</jats:p>

Financial Reporting Quality, Tax Avoidance, Debt Maturity, and Investment Efficiency: The Moderating Role of Corporate Social Responsibility Disclosure

“…Al 'Alam & Firmansyah (2019), Gomariz & Ballesta (2014), Hung et al (2020), Jafari (2016), Suaidah & Sebrina (2020) concluded that debt maturity positively influences investment efficiency. The company's use of short-term debt can overcome the underinvestment problem owned by the company (Al 'Alam & Firmansyah, 2019).…”

“…The company's use of short-term debt can overcome the underinvestment problem owned by the company (Al 'Alam & Firmansyah, 2019). Short-term debt has requirements that tend to be easy so that it is fast to fulfill and has a quick disbursement process (Hung et al, 2020). Therefore, short-term debt will more quickly provide the company with a source of funds that can increase the efficiency of the company's investment.…”

“…Research on investment efficiency has been carried out in Indonesia and at the international level to examine the factors that affect investment efficiency and the financial report's quality (Al 'Alam & Firmansyah, 2019;Aulia & Siregar, 2018;Biddle et al, 2009;F. Chen et al, 2011;Christine & Yanti, 2017;Herbert & Harto, 2021;Kurniawan & Firmansyah, 2019;Li & Wang, 2010;Shahzad et al, 2019), debt maturity (Al 'Alam & Firmansyah, 2019;Aulia & Siregar, 2018;Gomariz & Ballesta, 2014;Hung et al, 2020), tax avoidance (Asiri et al, 2020;Bailing & Rui, 2018;Ding, 2019;Firmansyah & Triastie, 2020;Khurana et al, 2018;Mayberry, 2012;Zeng, 2019), corporate governance Salin et al, 2018), corporate responsibility disclosure (Benlemlih & Bitar, 2018;Firmansyah & Triastie, 2020;Samet & Jarboui, 2017), capital structure (Anela & Prasetyo, 2020; Pranata & Fitriyah, 2020), audit quality (Bae et al, 2017;Boubaker et al, 2018), tax risk (Kurniawan & Firmansyah, 2019) Based on the results of previous studies, research that investigates three hypotheses within the scope of agency theory, financial report quality, tax avoidance, debt maturity, on investment efficiency in one study is still rarely conducted (Jadi et al, 2021;Saksessia & Firmansyah, 2020). These three components can represent the behavior of managers related to the selection of company policies that can affect the company's investment efficiency.…”

“…Childs et al (2005) predicted that the high flexibility of the firm's faster debt maturity could help increase the firm's investment efficiency. Al 'Alam & Firmansyah (2019), Gomariz & Ballesta (2014), Hung et al (2020), Jafari (2016), Suaidah & Sebrina (2020) concluded that short debt maturities could improve investment efficiency. Short-term debt will be paid in a shorter period so that the company's interest expense is not too significant, making the profits entirely belong to the company.…”

Efisiensi Investasi Perusahaan Barang Konsumsi di Indonesia: Kualitas Laporan Keuangan Dan Kecurangan Dalam Akuntansi

“…Penelitian sebelumnya sudah menguji efisiensi investasi dengan beberapa faktor seperti kualitas laporan keuangan (Gusmawan & Novita, 2017;Aulia & Siregar, 2018;Shahzad et al, 2019;Sitorus & Murwaningsari, 2019;Assad & Alshurideh, 2020;Fajriani et al, 2021;Akasumbawa & Haryono, 2021), kepemilikan keluarga (Shahzad et al, 2019), kualitas audit (Assad & Alshurideh, 2020), insentif pajak (Sitorus & Murwaningsari, 2019), tata kelola perusahaan (Sitorus & Murwaningsari, 2019;Akasumbawa & Haryono, 2021), diversitas gender (Gusmawan & Novita, 2017), koneksi politik (Saputri, 2020), kepemilikan institusional (Simanungkalit, 2017;Fajriani et al, 2021), maturitas utang (Aulia & Siregar, 2018;Hung et al, 2020;Fajriani et al, 2021;Akasumbawa & Haryono, 2021), kualitas informasi akuntansi (Elaoud & Jarboui, 2017;Saputri, 2020;Hidayat & Mardijuwono, 2021), komite audit, komisaris independen, dan kepemilikan manjerial (Simanungkalit, 2017), kualitas laba (Hung et al, 2020), karir Chief Executive Officer (CEO) (Aulia & Siregar, 2018), spesialisasi auditor (Elaoud & Jarboui, 2017), kepemilikan asing (Tran, 2020), karakteristik manajemen (Lai & Liu, 2017), kepemilikan negara dan kepercayaan sosial (Fonseka et al, 2021). Penelitian ini bertujuan untuk menguji tentang adanya pengaruh kualitas laporan keuangan terhadap efisiensi investasi mengingat masih terdapat perbedaan (inkonsistensi) hasil dengan penelitian sebelumnya sehingga masih diperlukan pengujian kembali.…”