Research On Relationship Of Ownership Structure And Investment Efficiency

Investment is an important role in corporation finance, and is also one of the major forces driving China's economic growth. enterprise efficiency of investment has shown enterprise allocation fund ability, and is related to enterprise being able to have attained value maximization's objectives, to have decided enterprise survival state and development prospect in being in market competition or not. So, many scholars take extensively research on the corporation's investment. China is in the period of transitional economy, and capital market is an emerging market, on one side, it is still serious of government's intervention to economy, this may affect corporation's investing decision. On the other side, shares of listed companies in China are highly concentrated in the largest shareholders. Because of this special ownership structure, ultimate shareholders may seek for private profits, this may also leading to inefficient investing behaviors.This study based on the_corporate governance theory, agency theory, asymmetric information theory, then got the hypothesis. In this paper, the non-financial companies listed in Shanghai and Shenzhen exchanges are selected as samples, from year 2006 to 2009,I separated companies into insufficient investment companies and over-investment companies, then researched factors such as the nature of controlling right, equity and balance degree, separation of controlling right and cash flow right.I found that:_Inefficiency investment is common in Chinese companies, insufficient investments are commoner than over-investments; Ownership structure is the most important factor, equity and balance degree hadn't implement its role; the separation of controlling right and cash flow right deteriorated investment efficiency, cash right played an active role to investment efficiency. At last, I gave a series of policy recommendations aimed at the actual situation of listed companies, and expected the future research.