IDEAS home Printed from https://ideas.repec.org/a/eme/nbripp/v6y2015i1p2-19.html
   My bibliography  Save this article

Does forward-looking non-financial information consistently affect investment efficiency?

Author

Listed:
  • Youchao Tan
  • Nan Xu
  • Xiumei Liu
  • Cheng Zeng

Abstract

Purpose - – The aim of this paper, which is based on Chenget al.’s (2012) research, is to re-examines the relationship between a firms’ voluntary disclosure of forward-looking non-financial information (FNFI) and investment efficiency. Design/methodology/approach - – The authors chose firms that publicly traded in the Shenzhen and Shanghai stock markets from 2005 to 2011, a total of 926 firms and 6,482 firm-year. To control the endogeneity problem between FNFI and investment efficiency, the authors lagged the FNFI variable for one year. Findings - – The authors found that FNFI alleviates a firms’ underinvestment but leads to overinvestment. These effects become gradually weaker over time. In addition, the results indicate that corporate governance helps improve the quality of FNFI, thus boosting investors’ confidence and easing financial constraints. Research limitations/implications - – The limitations of this paper are mainly focused on the measure of FNFI. The authors only considered the quantity of FNFI disclosed by firms and ignored other characteristics of FNFI. Originality/value - – Based on Chenget al.’s (2012) static findings, this paper considers the dynamic role of FNFI in firms’ investment decisions.

Suggested Citation

  • Youchao Tan & Nan Xu & Xiumei Liu & Cheng Zeng, 2015. "Does forward-looking non-financial information consistently affect investment efficiency?," Nankai Business Review International, Emerald Group Publishing Limited, vol. 6(1), pages 2-19, March.
    • Handle: RePEc:eme:nbripp:v:6:y:2015:i:1:p:2-19
    DOI: 10.1108/NBRI-07-2014-0033
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/NBRI-07-2014-0033/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/NBRI-07-2014-0033/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/NBRI-07-2014-0033?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:nbripp:v:6:y:2015:i:1:p:2-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.