Manufacturing Listed Companies Of Information Transparency And Over-investment Behavior-related Research

The company's investment activities have an immediate impact on the interest of shareholders, creditors and other general of investors. They are important to the value of companies too. For a long time, as a result of information asymmetry between investors and operators. Many a managers abuse their policy-making right and accept a large number of inferior and non-profit investments regardless of the company value to obtain private benefit. These kinds of opportunism behaviors are harm for company's shareholders and creditor's benefit and reduce the efficiency of capital allocation.Therefore, it is the high time that effective restraint of such acts in order to enhance efficiency of funds. At present, domestic and foreign scholars generally believe that dividend debt and strengthening corporate governance have positive influence on controlling over-investment behavior and dealing with the conflict between shareholders and managers. And some corresponding scholars have been carried out many a empirical test research. Are there any other alternative ways of handling over-investment?In this paper, basing on asymmetric information hypothesis and principal-agent theory hypothesis, I will link the quality of information the mechanism of information transmission and over-investment behavior to probe how to structure information channel between investors and managements to reduce agent costs and solve the moral hazard problem. Firstly, I have conduct some theoretical analysis basing on the research achievement in related fields of information transparency and over-investment behavior. Secondly, I have carried out my empirical study with manufactured companies data from Shanghai and Shenzhen stock market 2007-2009 databases. The results show that Information transparency, Monitoring capacity and motivation of Investors have a significant impact on over-investments behaviors. Meanwhile, Information recognition is of equal importance. Finally, I propose some specific and effective measures to suppress over-investments.