Corporate investment efficiency, disclosure practices and governance : a systematic literature review and empirical evidence

• Main Author: Elberry, Noha Said
• Other Authors: Hussainey, Khaled ; Tao, Lei
• Published: University of Portsmouth 2018
• Online Access: https://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.765716

The aim of this research is to examine the factors that affect and are affected by corporate investment efficiency. Studying how effective a firm is in managing its investment opportunities given the worldwide economic and political instability is quite important. This thesis consists of four essays. Each of them contributes to existing corporate investment efficiency in its own manner. To the best of my knowledge, this research contributes the following. First, it provides a systematic literature review of firm-related factors affecting corporate investment efficiency identifies gaps and offers opportunities for future research. Second, it investigates the impact of macroeconomic factors on corporate investment efficiency. Third, it examines the impact of corporate investment efficiency on voluntary disclosure. Finally, it examines the joint effect of corporate governance and investment efficiency on voluntary disclosure. Therefore, this thesis considers investment efficiency as being both a dependent and an independent variable. It also takes the internal and external factors related to investment efficiency into consideration. OLS regression analyses are used to test the research hypotheses. The results of the thesis highlight gaps in prior studies and provide opportunities for future research. The findings also reveal that Gross Domestic Product (GDP) growth and inflation rates affect corporate investment efficiency. Also, it is found that corporate investment efficiency has a positive impact on voluntary disclosure, but has a negative impact on disclosure tone. Moreover, when introducing the joint effect of governance and investment efficiency, the analysis shows that both variables have a complementary influence on voluntary disclosure, yet have a substitution effect on disclosure tone. The findings are relevant for diverse stakeholders and could assist them in making decisions.