Product Market Competition,Inventory Holding Behaviors And Corporate Investment Efficiency

Taking China's A share manufacturing listed companies as objects.based on the perspective of financing constraints.the shocks toward corporate investment efficiency of Product Market Competition(PMC)were studied.The adjustment effects on this kind of shocks played by inventory holding behav iors were studied also.Studies were carried out regarding the financing function of inventory as principle line,and the corporate internal financing mechanism based on the adjustments of inventory holdings was put forward.The main contents include:(1)The influences on investment efficiency of PMC and inventory holdings.The corresponding part in the main text is chapter 3.The relationship between PMC and investment efficiency was investigated.The adjustment effects of inventory holdings on the relationship were investigated also.The empirical results show that.PMC has aggravated the financial constraints faced by corporates,and that decreased investment efficiency.Inventory reserve can relieve the shocks from PMC.so as to improve investment efficiency.The reasons are that.inventory reserve has financing function.With the aggravating of PMC.the financing function of inventory reserve becomes evident.this will be helpful for investment activities.(2)The influences on investment efficiency of PMC and inventory adjustments.The corresponding part in the main text is chapter 4.The PMC's influences on the behaviors of inventory adjustment were investigated.Inventory adjustments' promoting role on investment efficiency under PMC environments were investigated also.The empirical results show that.PMC will improve the sensitivity of inventory adjustments to revenue.Furthermore.in highly competitive industries.the decrease of inventory holdings can improve corporates' investment efficiency to a greater extent.(3)PMC's influences on the value of inventory holdings.The corresponding part in the main text is chapter 5.Inventory reserve's marginal contribution to corporate value was investigated.The influences on this value of PMC were investigated also.The empirical results show that,the value of inventory holdings is obviously greater than one.Futhennore.with the aggravating of PMC.the marginal value of inventory will increase accordingly.That means.the existence of inventory reserve is inevitable,while PMC will make the importance of inventory reserve more obvious.(4)The differences of investment efficiency caused by the intervals of inventory holdings.The corresponding part in the main text is chapter 6.Using threshold regression method,the inventory holdigns were grouped into overstock and non-overstock intervals.The empirical results show that.overstock will cause lower investment efficiency.That means.with the aggravating of PMC,corporates should increase inventory holdings.However.inventory holdings should be under a certain level for the avoidance of overstock.(5)PMC and inventory dynamic management.The corresponding part in the main text is chapter 7.The existence of objective inventory holdings and the determinants of inventory holdings' adjustment speeds were investigated.The empirical results show that,the objective inventory holdings of corporates are existent.Based on the partial adjustment model.using GMM method to estimate the model,it was found that.PMC will restrain the adjustment speeds of corporates' inventory.To promote the adjustment speeds of inventory and the efficiencies of resource allocation,the financing environments faced by corporates should be improved.