Accounting Quality and Firm-Level Capital Investment

By Gary C. Biddle, Gilles Hilary. 2006

1,054 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/8a6677d49b573334b48f535eb73e1d28120ec18c

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Citations in the corpus

The effects of financial reporting and disclosure on corporate investment: A review (2019, methodology): “For example, using both country-level and firm-level measures of financial reporting quality and investment-cash flow sensitivity as a proxy for investment efficiency, Biddle and Hilary (2006) document a positive association between accounting information and investment efficiency.”
Do employee-friendly firms invest more efficiently? Evidence from labor investment efficiency (2020, positive): “can affect investment efficiency (Biddle et al., 2009; Biddle and Hilary, 2006; Healy and Palepu, 2001; Jensen and Meckling, 1976; Lambert et al., 2007) and show that moral hazard can lead to either over- or underinvestment when managers maximizing their private benefits (e.”
The Relation Between Reporting Quality and Financing and Investment: Evidence from Changes in Financing Capacity: REPORTING QUALITY AND FINANCING AND INVESTMENT (2014, neutral): “, Biddle and Hilary [2006], Biddle, Hilary, and Verdi [2009]).”
Common Auditors in M&A Transactions (2016, positive): “In particular, prior research finds that accounting information facilitates more efficient corporate investment by reducing agency problems caused by information asymmetry (e.g., Biddle et al., 2009; Biddle and Hilary, 2006), by providing peer firms with more information (e.”
The effect of target-firm accounting quality on valuation in acquisitions (2014, positive): “2 Prior research has examined the use of accounting information by investors (Cohen 2003; Francis et al. 2005; Core et al. 2008) and by lenders (Biddle and Hilary 2006), as well as a firm’s use of its own accounting information in compensation (Peng 2007) and capital investment decisions (Biddle et…”
Financial Reporting Quality and Labor Investment Efficiency (2014, positive): “In a cross-country setting, Biddle and Hilary (2006) find that investment in fixed assets is less sensitive to internally generated cash flows for countries characterized by higher quality accounting.”
Managerial Ability, Investment Efficiency and Stock Price Crash Risk (2017, positive): “Better quality financial reporting has been found to reduce investment-cash-flow sensitivities as well as deviation from expected investment levels (Biddle and Hilary 2006; Biddle et al. 2009). Bushman et al. (2011) find that more timely accounting recognition of economic losses constrains overinves”
The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research (2015, background): “…is often constructed from firm-level measures and hence does not necessarily reflect regulatory differences, but could also capture voluntary disclosures and reporting choices (e.g., Biddle and Hilary, 2006; Francis et al., 2009; Bushman et al., 2011; Chen et al., 2011; Shroff et al., 2014).”