Financial reporting quality, debt maturity and investment efficiency - Evidence from Viet Nam
Abstract
The research conducts a quantitative assessment on the 0relation between financial reporting quality, debt maturity and investment efficiency of 66 Vietnamese listed firms on Ho Chi Minh Stock Exchange (HoSE) from 2007 to 2017. Besides testing the impact of the quality in financial report on investment efficiency, the influence of short-term debt maturity to the effectiveness of investment is also examined in this thesis. By combining fours econometric tools, included pooled ordinary least square (POLS), random effect model (REM), and fixed effect model (FEM), this paper discovers several intriguing points. First and foremost, financial report quality and debt maturity are positively related to investment efficiency. This recommend that the financial report quality enhance investment efficiency. Likewise, the shorter time that debt will be matured, the higher level of investment efficiency is. These finding is also harmonized with the earlier study. Next, in contract to financial report quality and debt maturity responses strongly and oppositely to investment efficiency.
Keywords: Financial Reporting Quality, Debt Maturity, Short-term Debts, Investment Efficiency