중국 유상증자 기업의 투자효율성

[Purpose]It is argued that seasoned equity offerings(hereafter SEO) firms are likely to over－invest after financing due to moral hazard and adverse selection. On the contrary, we recognize the possibility that the overinvestment will occur in the period SEO firms manage earnings or revenues upward, not after financing. This kind of misstatement may distort the investment decision of management to expect future growth or constrain the ability of stakeholders to monitor and control the management. [Methodology]We examine the relation between accounting quality and investment efficiency in the years before, the year of, and the years after SEO. Specifically, we identify the period in which SEO firms distort accounting information by increasing earnings or revenues through accruals, and then test whether SEO firms over－invest inefficiently in the period earnings or revenues are managed upward. [Findings]Our results show that SEO firms increase earnings and revenues in the years before and the year of SEO and in turn, over－invest substantially in response to the misstatement. On the other hand, they don’t increase earnings and revenues in the years subsequent to SEO and also do not over－invest anymore. [Implications]We extend the literature on the relation between accounting quality and investment efficiency by documenting that the overinvestment of SEO firms is due to distorted accounting information rather than financing.