Considerations on the Relationship Between Accounting Conservatism and Firm Investment Efficiency Based on Large Data Analysis
In recent years, large data analysis methods have been widely used in many fields. For example, it can be applied to environmental art design, computer technology application and so on. More and more companies are investing, so the importance of accounting conservatism and investment interest is increasing gradually. Based on big data, this paper explores the relationship between accounting conservatism and firm investment interest. The endings indicate that accounting conservatism has the following effects on investment profits. First, it can restrain excessive investment and second, it can aggravate underinvestment. If accounting conservatism restrains over-investment, the regression coefficient of accounting conservatism is −0.0265, and there is a remarkable change at the level of 4%. If this conservatism aggravates underinvestment, the regression coefficient of accounting conservatism and underinvestment is 0.0130, which is remarkable at the level of 0.9%.
KeywordsBig data analysis Accounting conservatism Investment efficiency
This paper was supported by a grant from The Youth Research Foundation of Chongqing Jianzhu College (Grant No. QN2015003).
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