Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5089073 | Journal of Banking & Finance | 2014 | 13 Pages |
Abstract
This study, conducted with a sample of Spanish listed companies during the period 1998-2008, examines the role of financial reporting quality and debt maturity in investment efficiency. The results show that financial reporting quality mitigates the overinvestment problem. Likewise, lower debt maturity can improve investment efficiency, reducing both overinvestment and underinvestment problems. We further find that financial reporting quality and debt maturity are mechanisms with some degree of substitution in enhancing investment efficiency: firms with lower (higher) use of short-term debt, exhibit higher (lower) financial reporting quality effect on investment efficiency.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Mª Fuensanta Cutillas Gomariz, Juan Pedro Sánchez Ballesta,