Research on China´s stock market volatility, accounting conservatism and economic consequences of the scale of investment

Using China´s Shanghai A-share listed companies from 2003 to 2011 for the total sample, empirical tested of company´s accounting conservatism impact on the scale of investment under the different cycles in the stock market. Empirical findings as follows: in the stock market rise cycle, the scale of company investment increases as the weakening of accounting conservatism; In the stock market down cycles, the company expanded the scale of investment on the premise that accounting conservatism strengthened.