Firms’ Investment Level and (In)Efficiency: The Role of Accounting Information System Quality
Abstract
:1. Introduction
2. Literature Review
2.1. Accounting Information System Quality
2.2. Investment Efficiency
2.3. Role of Accounting Information System on Investment Efficiency
3. Results
3.1. Descriptive Statistics
3.2. Econometric Results and Discussion
4. Materials and Methods
4.1. Sample Selection
4.2. Empirical Model
- i, t corresponds to firm i and year t;
- TCA is the total accruals scaled by the lagged total assets;
- SIZE is the total assets of firm I;
- ΔSales is the change in sales from the previous to the current year, scaled by the lagged total assets;
- ΔAR is the change in accounts receivable from the previous to the current year, scaled by the lagged total assets;
- PPE is the net property, plant, and equipment scaled by the lagged total assets;
- ROA represents a return on assets in the previous period, computed by EBIT scaled by the total assets.
- i, t corresponds to firm i and year t;
- AC is the current assets;
- LC is the current liabilities;
- Cash represents both cash and bank deposits;
- STD corresponds to the short-term debt;
- DDA represents the depreciation and amortization costs.
- i, t corresponds to firm i and year t;
- INV represents the change in value of the investment from the previous to the current year over total assets in the previous year, with the investment value being calculated through the sum of changes in tangible fixed assets and intangible assets;
- DAC corresponds to the estimated discretionary accruals, obtained by estimating the error term of Equation (1).
- Inv is the total investment, calculated through the sum of tangible and intangible fixed assets;
- SalesGrowth is the percentage change in sales from the previous to the current year.
5. Conclusions
Author Contributions
Funding
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
1 | https://login.bvdinfo.com/R0/SabiNeo (accessed on 15 May 2023). |
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Variables | Observations | Mean | Median | Std. Deviation | Maximum | Minimum |
---|---|---|---|---|---|---|
INV | 18.438 | 0.0154 | −0.0015 | 0.0735 | 0.4008 | −0.1187 |
DAC | 18.438 | 0.000 | −0.0037 | 0.1137 | 0.3878 | −0.3467 |
Size | 18.438 | 8,986,813 | 6,366,345 | 7,163,233 | 34,699,529 | 2,214,733 |
Growth | 18.438 | 0.0635 | 0.0439 | 0.2576 | 1.1365 | −0.6362 |
Debt | 18.438 | 0.2358 | 0.2117 | 0.1958 | 0.7756 | 0.0000 |
ROA | 18.438 | 0.0374 | 0.0262 | 0.0654 | 0.2731 | −0.1656 |
Panel A: Firms That Overinvest | ||||||
---|---|---|---|---|---|---|
Variables | Observations | Average | Median | Std. Deviation | Maximum | Minimum |
Audit | 4610 | 0.0737 | 0.000 | 0.26139 | 1.00000 | 0.0000 |
DAC | 4610 | 0.0016 | 0.0017 | 0.10979 | 0.3650 | −0.3722 |
Loss | 4610 | 0.1883 | 0.000 | 0.39098 | 1.0000 | 0.000 |
OverInv | 4610 | 0.2778 | 0.2432 | 0.1334 | 0.7911 | 0.1280 |
Panel B: Firms That Underinvest | ||||||
Audit | 4610 | 0.1176 | 0.0000 | 0.3221 | 1.0000 | 0.0000 |
DAC | 4610 | 0.0018 | −0.0024 | 0.1246 | 0.4179 | −0.4293 |
Loss | 4610 | 0.1299 | 0.0000 | 0.3362 | 1.0000 | 0.0000 |
UnderInv | 4610 | −0.2348 | −0.2068 | 0.0875 | −0.1456 | −0.5713 |
Panel C: Firms with Efficient Investment | ||||||
Audit | 9218 | 0.0716 | 0.0000 | 0.2578 | 1.0000 | 0.0000 |
DAC | 9218 | −0.0022 | −0.0078 | 0.1114 | 0.3823 | −0.32475 |
Loss | 9218 | 0.1316 | 0.0000 | 0.3380 | 1.0000 | 0.0000 |
EfficientInv | 9218 | −0.0229 | −0.02884 | 0.1114 | 0.12213 | −0.14230 |
Size | Growth | Debt | DAC | ROA | INV | |
---|---|---|---|---|---|---|
Size | 1.000 | |||||
Growth | 0.034 *** | 1.000 | ||||
Debt | 0.057 *** | 0.038 *** | 1.000 | |||
DAC | 0.035 *** | 0.066 *** | 0.041 *** | 1.000 | ||
ROA | 0.026 *** | 0.237 *** | −0.286 *** | 0.091 *** | 1.000 | |
INV | 0.039 *** | 0.097 *** | 0.007 | −0.058 *** | 0.072 *** | 1.000 |
Panel A: Firms That Overinvest | ||||||||
---|---|---|---|---|---|---|---|---|
Model 1 | Model 2 | |||||||
Audit | DAC | Loss | OverInv | Audit | DAC | Loss | OverInv | |
Audit | 1.000 | 1.000 | ||||||
DAC | −0.013 | 1.000 | −0.033 ** | 1.000 | ||||
Loss | 0.117 ** | −0.042 ** | 1.000 | 0.114 ** | −0.075 ** | 1.000 | ||
OverInv | 0.089 ** | 0.004 | 0.047 ** | 1.000 | 0.048 ** | 0.023 * | 0.072 ** | 1.000 |
Panel B: Firms That Underinvest | ||||||||
Audit | 1.000 | 1.000 | ||||||
DAC | −0.035 * | 1.000 | −0.022 * | 1.000 | ||||
Loss | 0.069 ** | −0.083 ** | 1.000 | 0.073 ** | −0.093 ** | 1.000 | ||
UnderInv | 0.012 | −0.026 | −0.069 ** | 1.000 | −0.049 ** | −0.028 ** | −0.034 ** | 1.000 |
Panel C: Firms with Efficient Investment | ||||||||
Audit | 1.0000 | |||||||
DAC | −0.032 | 1.000 | ||||||
Loss | 0.092 | −0.109 | 1.000 | |||||
EfficientInv | −0.019 | −0.011 | 0.041 ** | 1.000 |
Variables | Expected Sign | Coefficients |
---|---|---|
Intercept | −0.081 *** (−6.230) | |
DAC | − | −0.047 *** (−7.039) |
Size | + | 0.0057 *** (6.861) |
Growth | + | 0.0239 *** (9.712) |
Debt | −/+ | 0.0080 * (2.205) |
ROA | + | 0.0707 *** (6.665) |
No. observations | 18.438 | |
R2 | 0.0204 | |
R2 adjusted | 0.0201 | |
F Test | 51.8487 (***) | |
Panel A: Firms That Overinvest | |||
---|---|---|---|
Model 1 | Model 2 | ||
Expected sign | Coefficient | Coefficient | |
Intercept | 0.2722 *** | 0.1534 *** | |
Audit | + | 0.0432 ** | 0.0240 |
Loss | − | 0.0126 | 0.0282 *** |
DAC | + | 0.0083 | 0.0421 * |
Observations | 4.610 | 9.219 | |
R2 | 0.0092 | 0.0076 | |
R2 adjusted | 0.0086 | 0.0073 | |
F-statistic | 3.6168 * | 8.4151 ** | |
Panel B: Firms That Underinvest | |||
Model 1 | Model 2 | ||
Intercept | −0.2328 *** | −0.1589 *** | |
Audit | − | 0.0043 | −0.0153 * |
Loss | + | −0.0189 ** | −0.0099 * |
DAC | + | −0.0220 * | −0.0262 ** |
Observations | 4.610 | 9.219 | |
R2 | 0.0060 | 0.0043 | |
R2 adjusted | 0.0053 | 0.0040 | |
F-statistic | 3.7148 * | 6.74264 ** | |
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Pereira, C.; Castro, B.; Gomes, L.; Canha, H. Firms’ Investment Level and (In)Efficiency: The Role of Accounting Information System Quality. Int. J. Financial Stud. 2024, 12, 9. https://doi.org/10.3390/ijfs12010009
Pereira C, Castro B, Gomes L, Canha H. Firms’ Investment Level and (In)Efficiency: The Role of Accounting Information System Quality. International Journal of Financial Studies. 2024; 12(1):9. https://doi.org/10.3390/ijfs12010009
Chicago/Turabian StylePereira, Cláudia, Beatriz Castro, Luís Gomes, and Helena Canha. 2024. "Firms’ Investment Level and (In)Efficiency: The Role of Accounting Information System Quality" International Journal of Financial Studies 12, no. 1: 9. https://doi.org/10.3390/ijfs12010009