The Relationship between Financial Reporting Quality and Investment Efficiency

摘要

Investment activities is one of the core financial activities in enterprises, and the financial report, which quality is closely related to the investment efficiency, is the window of knowing the management state. This paper, from the implication of financial reporting quality and investment efficiency angle, hackles the effect of the financial reporting quality on the efficiency of investment. The paper also analyzes the internal mechanism of high-quality financial reporting quality govern the inefficient investment in the frame work of the principal-agent theory and information asymmetry theory. Hereby, we can understand the significance of the high-quality financial report and improve the efficiency of investment.