THE INFLUENCE OF ACCOUNTING INFORMATIONAL RELEVANCE TOWARDS THE SENSITIVITY OF EFFICIENT CAPITAL INVESTMENT
No Thumbnail Available
Date
2011-11-24
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
International Accouting Conference, Accounting Departement, Faculty of Economic Universitas Negeri Surabaya,
Abstract
Prior research shows that accounting information quality is positively
related to investment efficiency. The purpose of this paper is to study the
relationship between accounting information quality and investment efficiency
in Indonesia. Based on Dechow and Dichev’s (2002) earnings quality measure, I
expect that the investment efficiency is stronger when firms have higher
earnings quality. Research conducted on 90 listed manufactured companies in
Indonesia Stock Exchange, selected through purposive sampling technique that is
consistent with the criteria listed there since 2006 until 2010, and also has a
comprehensive financial reporting data. The evidence is consistent with the
hypothesis that high accounting quality provides more investment efficiency.
Description
Keywords
Accounting information, earnings quality, investment efficiency