الفهرس 
Investigating the Effect of Accounting Conservatism on Investment Efficiency and Debt Financing: An Empirical Study
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Abstract
The main objective of the current research is to examine the effect of accounting conservatism on investment efficiency. More specifically, this research investigates whether accounting conservatism reduces overinvestment and underinvestment problems. Additionally, examining whether accounting conservatism mitigates the underinvestment problem by raising debt financing. The sample covers a period of five years from 2012 to 2016 and includes 57 Egyptian firms listed in the Egyptian Stock Exchange. An ordinary least square (OLS) regression is conducted to test the research hypotheses. The negative accruals measure is used to measure accounting conservatism, the Richardson model is used to measure investment efficiency and total liabilities scaled by total assets is used as a measure for debt financing. The results show that: first, there is a significant negative association between accounting conservatism and both overinvestment and underinvestment, implying that there is a positive association between accounting conservatism and investment efficiency. Second, there is a significant positive association between accounting conservatism and debt financing in firms suffering from underinvestment problems. Therefore, accounting conservatism can mitigate the underinvestment problem by facilitating and raising debt financing. Hence, the research findings reveal that accounting conservatism is important for improving the quality of financial information and conservatism’s removal from the conceptual framework will harm the financial reporting quality