Research On The Influencing Factors Of Inefficiency Investment In Chinese Mining Listed Companies

Against the background of the sluggish global economic recovery and the "L" phase of China's economy,China has put forward a solution to the supply-side structural reform.Mining is an important aspect of the supply-side structural reform in our country.China's mining and mining enterprises are facing new opportunities and challenges,and how to improve the investment efficiency and supply quality of mining enterprises has become an important starting point for the reform and development of China's mining enterprises.Based on the previous studies on inefficient investment,this paper bases on the inefficient investment and its influencing factors in China's mining listed companies.Based on the three theories,Tobin Q theory,principal-agent theory and asymmetry information theory,this paper establish a residual measure model to measure the inefficient investment direction and degree of China's mining listed companies.This paper measures the direction and degree of inefficient investment in China's mining listed companies through normative analysis and empirical analysis,quantitatively analyzes the relationship between inefficient investment and corporate governance such as ownership structure,board structure,equity incentive and agency costs,and the relationship between inefficiency investment and product price cycle,monetary policy,financing constraints and stock index and other external factors.1.Through the statistical analysis of the data of 122 mining listed companies from 2011 to 2016,this paper finds that during the period,the overall investment expenditure of China's mining listed companies is relatively low,which shows the distribution of "the western is higher than the east and the east is higher than the middle".As a whole,the investment spending of state-owned enterprises is generally higher than that of non-state-owned enterprises.Based on the multi-dimensional indexes such as financing constraints,investment opportunities and profitability,it can be seen that the debt level is negatively correlated with the investment expenditure.The scale of the enterprises shows a positive correlation with the investment expenditure.The age of listed companies and investment expenditures are negative.There is a certain positive correlation between investment opportunities and investment spending.However,the growth rate of operating income and investment expenditure is not a simple linear positive correlation.The corporate net interest rates,stock returns and investment expenditures showed a positive correlation.2.The panel data model is used in this paper to quantitatively analyze the impact of corporate governance factors such as corporate ownership structure,board structure,equity incentive system and agency cost on inefficient investment in enterprises.The empirical study shows that,as a whole,the ownership concentration will promote the inefficient investment of enterprises,and the inefficiency investment of state-owned enterprises is greater than that of non-state-owned enterprises,however,these are reflected in over-investment and not obvious in under-investment.The influence of the board structure on inefficient investment is not obvious,but the size of the board of directors will increase the under-investment of enterprises while the combination of two posts will inhibit the under-investment of enterprises Equity incentive can significantly reduce the inefficient investment in enterprises,but mainly reflected in the inhibition of under-investment,not in the inhibition of over-investment.Management's agency costs to shareholders(the first type of agency costs)will reduce the inefficient investment of enterprises(under-investment),and the controlling shareholder's agency costs to minority shareholders(the second type of agency costs)have no significant impact on the inefficient investment of enterprises.3.In this paper,panel data model is used to quantitatively analyze the impact of external factors such as mineral product price cycle,monetary policy,financing constraints and stock index on inefficient investment in mining enterprises,and compare the results of enterprises with different property rights.Empirical evidence shows that the product price cycle is positively related to the inefficient investment of enterprises,while the high product prices will promote the over-investment of enterprises but will reduce the under-investment of non-state-owned enterprises.Looser monetary policy will lead to over-investment of state-owned enterprises,but also reduce under-investment of non-state-owned enterprises;the strengthening of financing constraints can reduce the over-investment of state-owned enterprises,but lead to the under-investment of non-state-owned enterprises;the stock index has no significant impact on the inefficient investment of state-owned enterprises and non-state-owned enterprises.4.Based on the empirical analysis of the relationship between inefficiency investment and corporate governance and external factors in China's mining listed companies,this paper puts forward some suggestions to improve the inefficient investment.First,it is suggested to promote the governance of property rights through mixed ownership reform,strengthen the construction of the board of directors,attach importance to entrepreneurial selection and management incentives.Second,it is suggested to further promote the market allocation of factors and the ability of understanding of shareholders and management to the mining cycle and the financial cycle of fluctuations and investment decision-making ability in the environment.