Financing and Investment Efficiency, Information Quality, and Accounting Biases
研究了会计偏差如何影响企业融资决策和信息质量，发现低利润行业适用向下偏差会计系统，高利润行业适用向上偏差会计系统，且向下偏差能激励好企业提升信息质量。
In this paper, we investigate the effect of accounting biases on firms' financing decisions and the role of accounting biases in endogenous information quality. We show that in industries with generally low-profit prospects, a downward-biased accounting system performs better than a neutral accounting system, and a more downward bias helps mitigate both investment and financing inefficiency; whereas for industries with generally high-profit prospects, an upward-biased accounting system is better than a neutral accounting system, and a more upward bias helps improve financing efficiency. In addition, we find that a more downward-biased accounting system motivates good firms to exert more effort to improve the information quality, which improves overall efficiency. This paper was accepted by Mary Barth, accounting.