The Influence of Information Disclosure Quality on Enterprise Investment Efficiency

Information disclosure has a critical role in reducing information asymmetry and promoting the fair and efficient operation of the capital market. Currently, research on enterprise investment efficiency is primarily conducted from perspectives such as corporate governance and ownership structure, with little literature looking at enterprise investment efficiency from the perspective of information disclosure quality. So, the focus of this study is on the relationship between the quality of information report and the efficiency of an organization's investments. By dividing information into three categories: overall information, financial information, and non-financial information, this paper studies the impact of the disclosure of these three kinds of information on corporate investment efficiency separately. This paper argues that when studying the impact of information disclosure quality on investment efficiency, the impact of information disclosure quality on investment efficiency should not be monotonous, and the quality of financial information disclosure and non-financial information disclosure should also be included in the research department for a more complete and comprehensive analysis. The result also shows that all three kinds of information disclosure can reduce the degree of information asymmetry and thus have an effect on financing constraints or agency costs, which therefore influence corporate investment efficiency. It also says that financing constraints and agency costs are important factors in investment efficiency, and the quality of information disclosure affects investment efficiency through these two factors.