Product Market Competition, Information Disclosure Quality And Inefficient Investment

The activity of investment is one of thethree major activities ofenterprises, which is the sourceof the growth of enterprise value, so theefficientinvestmentis vitalfor the survival and development of enterprises. However,asymmetric information and agencyconflict make the investment behavior of enterprises far from the goal of value maximization, performing under-investment and overinvestment.Compared with listing corporations of main board and SME board, the listing corporations of chi next board have high information asymmetry and agency conflict, therefore, they have very most serious problem of inefficient investment. The signal transmission theory and new competition theory suggest that the high quality of the information disclosure and the intense competition environment can reduce the information asymmetry and agency conflict. So, whether the quality of information disclosure and the fierce competition of product market significantly inhibit the inefficiency of investment behavior in the listing corporations? This is the main content of this paper. At the same time,this paper furtherexplores the relationship between the competition of product market and information disclosure.In this paper, the listing corporations of chi next board in 2011-2013 years are the Primary research objects,through collecting and collating the research data of the GEM Listing Corporation 2010-2013,and eliminating the listing corporation which do not meet the requirements,this paper finally choice 58 listing Corporations of 2011,188 listing Corporations of 2012 and 290 listing Corporations of 2013 as the final research object for empirical analysis. Through the empirical analysis, this paper found that:(1) the listing corporations of chi next board universally existent non-efficient investments, with significant features of inadequate investment is broader but shallower, excessive investment is smaller but deeper;(2) the quality of information disclosure and non-efficiency of investment is significantly negative, that is the high quality information disclosure has inhibitory effect of the inefficient investment,but the inhibitory effect on the lack of investment is more significant;(3)the degree of product market competition and non-efficiency of investment is significantly negative, that is the competition of product market has inhibitory effect of the inefficient investment, but the effect on over investment is more significant;(4)withto the increase of the competition of product market,the information disclosure mechanism will befurther enhanced, which shows the competition of product market andinformation disclosure is thecomplementary relation.Finally,according to theempirical results and combining with China’s specific national conditions,this paper puts forward some suggestions and points outthe deficiencies.