Large customer’s earnings managements will result in their suppliers’ suboptimal investment decisions because of the effect of information spillover in the supply chain.From data taken from listed firms in Shanghai and Shenzhen stock exchange between 2010 and 2015，we find that firms’ suppliers will increase the possibility of overinvestment in the increasing earnings period，and decrease the possibility of underinvestment in the decreasing earnings period.Additional findings indicate that firms’ accounting information will affect their suppliers’ investment efficiency more when the suppliers depend more on the firms.Furthermore，firms’ accounting information affects their suppliers’ investment efficiency in different ways when the ownership property of suppliers varies.Finally，our findings indicate the association between supplier investment and future cash flows is weaker because of the large customer’s earnings management.This paper provides a new perspective for investors and regulators to understand the inefficient investment behavior of enterprises.