Research On Investment Efficiency Of Thermal Power Listed Companies

In the 21st century, China's economy has maintained rapid growth. Investment has played a major role in pulling. Some industries'economic in China has show a phenomenon of over-investment, which leading to capacity excess and waste of social resources. It is inseparable between overheating investment of Macro-economy and non-efficiency investment of companies. For businesses, looking for the new investment opportunities are the only ways to make money that always run through the business all the time. There is no development without investment, whether the investment have efficiency or not is related to the maximize value of enterprises directly. Therefore, this article will select thermal listed companies as the study of samples, discuss and analyze the efficiency of enterprise investment.This paper will focus on the corporate governance theory and free cash flow theory as the theoretical basis, select the financial reports for 2007-2009 of thermal power listed companies in Shanghai and Shenzhen as the research sample and do related empirical testing. The paper first defines the enterprise theory, the efficiency of investment and how to determine the efficiency of business investment has, and then analyzes the company's free cash flow and the relationship between the efficiency of business investment, combined with our free cash flow thermal problems listed companies and agents is proposed China's listed thermal power companies have non-efficiency investment assumptions, and from the company of several possible governance structure of listed companies on the thermal factors that affect investment efficiency, the underlying assumptions made. In the empirical test, the paper constructs models of the thermal efficiency of listed companies to invest in discrimination, and related factors affect the efficiency of investment analysis. The descriptive statistics through the model and regression test showed that: the non-efficiency investments of listed thermal power companies are popular. Most companies have over-investment, what's more, there is positive correlation between over-investment and free cash flow, which much more easily?induce over-investment behavior ;positive correlation between ownership structure and non-efficient investment behavior is significant, the state-owned major shareholder had no inhibition on non-efficiency investments, and higher ownership concentration, the more serious non-efficiency investments; the impact of the board's independence and the Supervisory Committee on non-efficiency investment is not obvious, which need further improvement in corporate governance; liability constraint had no effect on the thermal power listed companies, but to a certain extent, promote the non-efficiency of enterprise investment.Based on the empirical test results of the analysis, the relevant policy recommendations:(1) thermal listed companies are mostly state-owned holding company, should further promote the split share structure reform, optimize the ownership concentration, strengthen the supervisory role of the ultimate controller, the improvement of existing listed company controlled thermal phenomena; (2) standardized system of independent director system and the Board of Supervisors, and improve internal oversight mechanisms, independent directors and the supervisory board to play a supervisory role; (3) improve the management incentive mechanism, enhance the interests of shareholders and managers consistency; (4) to play the market in resource regulation, and reduce government intervention in the thermal power industry to eliminate soft budget constraint, the thermal sources of funds of listed companies the market, attention to debt financing for the inhibitory effect of over-investment.