Research On The Influencing Factors Of The Investment Efficiency In Listed Companies

With the number of Chinese listed private companies increasing in recent years, the efficiency of capital use in listed private companies has also been the focus of the parties. However, the inefficiency of business investment has been the problem of many countries today, and that is much more serious in Chinese listed companies. The debacle of "Delong Department", the collapse of the "monkey group" and the Decline of "Tuopu Department" are the consequence of investing blindly. Foreign scholars began to work on the reason of low investment efficiency in listed companies early. Domestic scholars studied the efficiency of investment late. Whether domestic or foreign scholars studied the whole listed companies, and few specialized in listed private companies. What affect the efficiency of investment in the listed companies? How do these factors affect the efficiency of investment in the listed companies? These issues are of interest to scholars, and solving these problems is important to optimize the investment decision-making and improve the investment efficiency in listed companies.This paper is divided into five parts, the first part is the introduction of this paper outlining the background of topics, research significance, and the viewpoints of scholars both domestic and foreign. The second part is mainly on theoretical studies and the current situation. Three basic theories of the investment efficiency study-the principal-agent theory, the information asymmetry theory and the behavioral economics theory are introduced. Then it defines the relevant concepts about investment efficiency. Once more, a descriptive statistic is conducted on the investment efficiency in listed private companies and their influencing factors from 2006 to 2008, the result of which is summarized and the status of investment efficiency is summed up. In the third part, a theoretical analysis of factors which would determine the investment efficiency both from macro and micro aspects is conducted. The fourth part is mainly on empirical study. Through the selection of the latest sample data and variable indicators, a multiple linear regression model is then built up, using the method of model residual to measure investment efficiency in listed private companies, and the relevance degree of key factors is studied by using SPSS software. The empirical result shows that the under-investment and over-investment phenomenon in listed private companies are common. Significant relevance exists between investment efficiency and the investment opportunities, internal cash flow and trade. In part five, a conclusion study is reached on the empirical study. According to the problems found in the analysis, policies and suggestions are made and the future research direction is also discussed.The innovation and characteristics of this paper is that, the factors affecting investment efficiency are considered in a more comprehensive way, avoiding the the one-sidedness of single factor to some extent. The financial data of the listed private company from 2006 to 2008 is analyzed, by modifying Richardson's residual measurement model. The significant relevance degree of investment efficiency is reached though regression analysis, which will help Chinese listed companies optimize investment decision-making.