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Research On The Relationship Between External Governance Environment,Agency Cost And Enterprise Investment Efficiency

Posted on:2017-08-13Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y C H OuFull Text:PDF
GTID:1319330512468959Subject:Business management
Abstract/Summary:PDF Full Text Request
As an important research topic in the field of corporate finance and corporate governance, enterprise investment efficiency has been the focus of academia and practice circle. With the continuous development of "Law and Finance"theory, a lot of empirical evidences indicate that the external governance environment has important influence on enterprises'investment behavior. The behavior of enterprises in the certain external governance environment tends to avoid disadvantages to adapt to the environment, thus the decision-making of their investment, to a large extent, is born in the external governance environment. In addition, compared with other internal and external governance mechanism, the external governance environment is a more basic and more exogenous macro level. It will affect the signing and implementation of enterprise contract, and further influence the efficiency of corporate governance. Without good external governance environment, it will be difficult to play its due role in governance based on various internal and external governance mechanism on the corporate level. This could be the profound reason for low efficiency of long-term enterprise investment in our country. Agency cost is the significant internal factor to influence corporate investment efficiency. External governance environment not only affects the enterprise investment efficiency directly, but also does so through agency cost. The ownership is an important feature of Chinese Enterprises, it is also of importance in affecting the enterprise investment efficiency. Therefore, the ownership will have a significant impact on the relations mentioned above.Different from existing research, this thesis takes the corporate investment efficiency as the central issue, and the external governance environment and agency cost as the theoretical points, using standard research methods and multiple regression empirical research methods, etc.It has carried on a systematical research on the relations between external governance environment, agency cost and enterprise investment efficiency.The innovation of this paper:1.This paper examines the mediating effect of agency cost between external governance environment and enterprise over-investment, in order to explore the acting mechanism and influence paths of external governance environment impacting enterprise over-investment.2.It examines the moderating effect of the ownership on the mediating effect of agency cost between external governance environment and enterprise over-investment.3.It examines the mediating effect of agency cost between external governance environment and enterprise under-investment, in order to explore the acting mechanism and influence paths of external governance environment impacting enterprise under-investment.4.It examines the moderating effect of the ownership on the mediating effect of agency cost between external governance environment and enterprise under-investment.In this paper, the main research results are as follows:First, external governance environment has a significant impact on enterprise investment efficiency. The level of rule of law and over-investment and under-investment have remarkable negative correlation, and government intervention and over-investment and under-investment have remarkable positive correlation. The above relations is significantly affected by the ownership. Second, the agency cost has a significant impact on enterprise investment efficiency. Agency cost and over-investment and under-investment are significantly positively correlated with each other, and for the non-state-owned listed companies, agency cost has a greater impact on the over-investment and under-investment of state-owned listed companies. Third, the external governance environment has a striking impact on agency cost. In the group of over-investment and under-investment, the listed companies' agency cost in the area of high level of the rule of law is outstandingly less than that in the low level region, and this relationship is not significantly influenced by the ownership; And in the group of over-investment and under-investment, the listed companies' agency cost in the area of much government intervention is significantly larger than that in the area of less government intervention, but in the group of over-investment, this relationship is not significantly influenced by the ownership, and in the group of under-investment, this relationship is significantly influenced by the ownership. Fourth, agency cost plays a mediating effect in the relations between external governance environment and enterprise investment efficiency.In the whole sample and the state-owned Sample Firms, agency cost plays a complete mediating effect in the relation between the level of rule of law and over-investment, agency cost plays a partial mediating effect in the relation between the level of rule of law and under-investment, agency cost plays a partial mediating effect in the relation between external government intervention and over-investment and under-investment, but it acts none in terms of agency cost of the non-state-owned sample companies.
Keywords/Search Tags:External Governance Environment, Agency Cost, Investment Efficiency, Ownership, Mediating Effect, Moderating Effect
PDF Full Text Request
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