Research On Background Characteristics Of Managers And Over-investment Enterprises

Investment is the most important strategic decision, and its efficiency will directly determine the value of the company's size. Corporate Investment is efficient, maximizing the value of the enterprise can successfully achieve the financial targets has an important influence. However, separation of control and ownership is typical of the modern enterprise, that enterprise is the right allocation of resources does not hold fewer shares of the Company held or controlled managers. Investment decisions in the corporate managers, because of moral hazard and asymmetric information exists, they are likely to first choose their own interests to launch investment projects and mergers and acquisitions, and these decisions may not only benefit the shareholders for their own benefit, and therefore the deviation from the goal of maximizing corporate investment behavior and inefficient. Usually presents the operators of private interests in order to get more cash flow to invest in companies with negative net present value of the project, resulting in the problem of excessive investment. Corporate capital investment made over a large number of precipitation in the areas of excess capacity, resulting in waste of resources and decline in value of the company, affecting the capital market to achieve efficient allocation of resources function.The enterprise's senior management (hereinafter referred to as the executive) is a professional operation and management of enterprises, as a strategic decision-makers within the enterprise, the ultimate decision-making power of enterprises as the enterprise's survival and development, they have a crucial role. Their commitment to human capital and other capital integration, coordination and maintain a variety of business activities, innovation, and finally reach their personal and business goals. Human capital theory of human capital as the biggest driver of economic development, while the enterprise has a strong senior management because of its accumulation of knowledge and ability to become the highest form of human capital on economic growth plays a strong role in promoting, is the most rooted in the enterprise of resources.In this paper, from 2005 to 2007 China Shanghai and Shenzhen listed company as the research object, research management background characteristics of over-investment. Results:The regression test for the full sample, managers, academic level, educational background and management of excessive investment scale and significant negative correlation between the sex ratio of managers and term life and a positive correlation between over-investment. Distinction between the nature of the enterprise in the sample group study, the state holding the sample data, the management of the professional background and managers by the age of the model tested in the data of non-state-controlled enterprises, the management of education, sex ratio, the management of scale are passed the test.The contribution of this:①The system demonstrates the behavior of listed companies in China there is the possibility of over-investment and the formation mechanism is conducive to investment in Chinese listed companies reveal the true reason for low efficiency.②In the framework of corporate governance, corporate investment behavior, especially over-investment in such non-management behavior of the efficiency of investment is conducive to deepening and improvement of corporate governance areas of research and theoretical system.③there for the Chinese capital market, the controlling shareholder of two very different nature, this distinction between the nature of listed companies on the state-controlled and non-state holding listed companies and business managers of over-investment characteristics of the relationship between the empirical test, promote Chinese enterprises to invest in-depth study of behavior.The limitations of this article:①This paper selected background characteristics of several representatives of the management parameters, ignoring the non-critical factors that lead to the regression results with a slight deviation of the actual situation, inevitable.②In the sample selection process, not a complete and comprehensive data, resulting in the regression results failed to fully reflect the true situation.