Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

Effect of Financial Reporting Quality on the Cost of Capital and Investment in China

Authors
Erheng Zhou1, *, Qianwen Luo2, Yanzi Wu3
1College of Business, The University of Alabama in Huntsville, Huntsville, AL 35899, USA
2University of Michigan, Ann Arbor, LSA, Ann Arbor, 48104, United States
3Chonqing Bachuan Quantum Middle school, Chonqing, 400000, China
*Corresponding e-mail: zhouerheng@gmail.com
Corresponding Author
Erheng Zhou
Available Online 26 March 2022.
DOI
https://doi.org/10.2991/aebmr.k.220307.262How to use a DOI?
Keywords
financial reporting quality; financial disclosure; capital and investment
Abstract

The quality of the financial report is a critical issue in accounting supervision and theoretical research and whether and how it affects the resource allocation decision of the capital market for understanding the importance of accounting to investors and management responsibility. In various financial activities of enterprises, investment management activities are the core, based on the specific relationship between the quality of financial reports and the company’s investment efficiency, in the process of practice management must grasp the key to the problem, in accordance with the requirements of the process. There is a close relationship between the quality of financial reports and investment efficiency, which is a supervision and management problem and has an essential impact on investment efficiency. It is necessary to start from the current financial management situation, clarify the relationship between the two, and do an excellent evaluation and evaluation. Starting from the mechanism of financial report affecting company’s investment decision, this paper summarizes and evaluates the measurement and empirical research of company’s investment efficiency in detail. In conclusion, when the quality of financial reporting is the only factor affecting investment, presenting a company’s projects to a broader audience through excellent financial reporting does lead to more investment.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.220307.262How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Erheng Zhou
AU  - Qianwen Luo
AU  - Yanzi Wu
PY  - 2022
DA  - 2022/03/26
TI  - Effect of Financial Reporting Quality on the Cost of Capital and Investment in China
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 1609
EP  - 1615
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.262
DO  - https://doi.org/10.2991/aebmr.k.220307.262
ID  - Zhou2022
ER  -