Open Access Peer-reviewed Research Article

Accounting information quality and investment decisions in the emerging markets

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Submitted   Apr 20, 2020
Published   May 27, 2020
Issue    Vol 1 No 1 (2020)
DOI   10.25082/FMB.2020.01.004

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Nouha Khoufi corresponding author
Department of Accounting, Faculty of Economics and Management of Sfax, Universite de Sfax, Sfax, Tunisia

Abstract

Accounting information quality has been said to play an important role in reducing information asymmetry. Thus, firms with high accounting information quality may enhance more investors’ decisions. This paper aims to empirically examine the association between accounting information quality and investment decisions among firms in Tunisia. The sample of this study consists of 50 firms listed on the Tunis Stock Exchange covering 2012 to 2016. The findings imply that accounting information quality is significantly negatively related to investment inefficiency. The inclusion of control variables and the use of alternative models to measure accounting information quality provide consistent findings. This paper has several important contributions. First, this paper provides new empirical evidence in an emerging market. Although emerging markets make up the vast majority of economic activity around the world, they have received limited attention in academic research. Second, this paper can also help researchers to better understand and realize the governance role of accounting information, and push them to investigate the other role of accounting information deeply and broadly.

Keywords
accounting information quality, investment inefficiency, agency costs, financial constraint, asymmetry

Article Details

How to Cite
Khoufi, N. (2020). Accounting information quality and investment decisions in the emerging markets. Frontiers in Management and Business, 1(1), 16-23. https://doi.org/10.25082/FMB.2020.01.004
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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

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