The Impact of Accounting Information Quality on Corporate Labor Investment Efficiency: Evidence from China

Zhi-zhu, Yuan; Hou, Lijuan; Zhou, Zuying; Sun, Yan

doi:10.1007/s11518-022-5537-5

Cited by 7 publications

(7 citation statements)

References 66 publications

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“…While in Model 1 the DAC variable is not statistically significant, in Model 2 it is significant at a 5% level, exhibiting a positive sign, suggesting that when discretionary accruals increase, this enhances overinvestment, and this in turn means that overinvesting tends to increase for firms that have a lower accounting information system quality in accordance to Gaio et al (2023), Yuan et al (2022), Lei et al (2022), Cardoso (2019), Linhares et al (2018), andBiddle et al (2009). Model 2 allows us to support our H2.…”

Section: Econometric Results and Discussionmentioning

confidence: 57%

“…According to Biddle and Hilary (2006) and Verdi (2006), superior accounting information reduces information asymmetry between managers and creditors, leading to more efficient investments. In the same vein, Yuan et al (2022) find that firms with a higher accounting information quality reduce underinvestment and overinvestment due to mitigating financial constraints and agency conflict for a sample of Chinese listed firms. Lei et al (2022) provide empirical evidence that accounting information quality enhances investment efficiency, which is stronger for firms with financial difficulties and agency conflicts.…”

Section: Role Of Accounting Information System On Investment Efficiencymentioning

confidence: 81%

“…In the same vein, the results of Costa et al (2021) indicated a positive relationship between earnings quality and investment efficiency, in particular by mitigating overinvestment. Yuan et al (2022) find that accounting information quality reduces labor investment inefficiency, both overinvestment and underinvestment. Therefore, the second research hypothesis is posited: H2: Poor accounting system quality has a positive impact on overinvestment.…”

Section: Role Of Accounting Information System On Investment Efficiencymentioning

confidence: 83%

“…Accounting information system quality is essential to accurately communicate the current and expected financial/economic position of firms. Financial statements are the main source of information for stakeholders to make decisions (Francis et al 2004;Yuan et al 2022). Therefore, it is essential that the information disclosed is transparent and reflects the true and fair view of the firm.…”

Section: Introductionmentioning

confidence: 99%

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Firms’ Investment Level and (In)Efficiency: The Role of Accounting Information System Quality

Pereira,

Castro,

Gomes

et al. 2024

IJFS

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We investigate whether accounting information system quality has an impact on the level and efficiency of firms’ investments. While firms’ growth depends on investment and financing decisions, accounting information is fundamental for the decision-making of several stakeholders. We assess the accounting information system quality by discretionary accruals, whereas the investment inefficiency is estimated by the residuals of an investment regression for a sample of 3073 Portuguese SMEs from 27 industries, over the period from 2016 to 2021 using a panel regression analysis. The empirical evidence suggests that firms exhibiting higher accounting information system quality tend to invest more. In addition, firms with a lower accounting information system quality have more inefficient investments, as they tend to engage in more overinvestment, although this is not significant for underinvestment. Therefore, this study provides new evidence regarding the impact of accounting information systems on investment that may be useful for several stakeholders, such as managers, creditors, regulators, and academics, by providing evidence for SMEs, where empirical studies are scarce.

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Section: Econometric Results and Discussionmentioning

confidence: 57%

Section: Role Of Accounting Information System On Investment Efficiencymentioning

confidence: 81%

Section: Role Of Accounting Information System On Investment Efficiencymentioning

confidence: 83%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Firms’ Investment Level and (In)Efficiency: The Role of Accounting Information System Quality

Pereira,

Castro,

Gomes

et al. 2024

IJFS

View full text Add to dashboard Cite

show abstract

“…An AIS is based on financial data mining that is launched from the process of collecting, analyzing, and interpreting large amounts of financial data to identify patterns and trends [41][42][43]. It is basically a method used to assign costs to different activities within an organization, or the cycle of activities that record transactional data from source documents to the business database [44][45][46][47][48].…”

Section: Ais Outcomesmentioning

confidence: 99%

The Role of Employee Empowerment in Supporting Accounting Information Systems Outcomes: A Mediated Model

Qatawneh

2023

Sustainability

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The current research study was carried out to explore the mediating influence of management awareness on the relationship between employee empowerment and accounting information systems (AIS) outcomes. A quantitative approach was adopted through the distribution of an online questionnaire to (97) financial managers and accounting managers within banks in Jordan. SPSS was used in order to analyze the primary data, and it was seen that management awareness mediates the relationship between employee empowerment and AIS outcomes, which is attributed to the fact that management needs to be aware of organizational goals and the financial information needed to achieve these goals. This includes an understanding of the latest accounting technology that is available to assist in this process. Additionally, management needs to be aware of the costs associated with the implementation of new systems, and any potential risks that could arise. By being actively involved in the implementation and decision-making process, management can ensure that AIS is efficient and produces the desired results. Finally, management should ensure that appropriate user training is available for all users of the information system. This ensures that the system can be utilized in the most efficient manner possible and produces the desired financial results. This study recommended the need to utilize integrated cloud-based systems to increase the availability of information and reduce the need for manual data entry. Further recommendations were presented in the study.

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Control and Accounting as Functions of the Organization's Management System

Rusakova,

Bystrov

2024

Lecture Notes in Civil Engineering

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The Impact of Accounting Information Quality on Corporate Labor Investment Efficiency: Evidence from China

Cited by 7 publications

References 66 publications

Firms’ Investment Level and (In)Efficiency: The Role of Accounting Information System Quality

Firms’ Investment Level and (In)Efficiency: The Role of Accounting Information System Quality

The Role of Employee Empowerment in Supporting Accounting Information Systems Outcomes: A Mediated Model

Control and Accounting as Functions of the Organization's Management System

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