Abstract

The objective of this article is to study the effect of accounting conservatism on the efficiency of investments The results of research conducted on a sample of 300 listed French companies over a period of 2013 to 2018 revealed that the majority of companies are conservative in their information Richardson s model indicated that companies in overinvested represent 55 while underinvested companies represent 45 of the sample set The result also shows that there is a relationship negatively significant between accounting conservatism and overinvestment and underinvestment Moreover there is a positive relationship between conservatism accounting and debt financing in companies with a problem of underfunding investment