Research On Ownership Checks And Balances And Inefficient Investments Of GEM

The investment activities of listed companies is an important foundation for future cash flow growth and a source of assurance, and it is directly related to the survival and development, and indirectly affect the behavior and efficiency of social allocation of capital. Since the reform and opening up, China’s economic development has made great achievements attracting worldwide attention, which one of the three carriage investment has played an important role in promoting for boosting economic growth, but while the listed company also produced a serious non-efficiency investment phenomenon, which seriously affect the development of market economy, and reducing the financing efficiency and operational efficiency of listed companies, these problems should be solved. The equity structure of listed companies is based on the traditional principal-agent theory and the size of the shareholder agency conflict theory, is to reflect the control of the company change and business decision-making to guide the direction of an important symbol of the equity balance as an effective inhibition of the role of large shareholders against a kind of equity form increasingly common in listed companies, but because of China’s capital market imperfections, commission agent conflict and information asymmetry factors and corporate investment behavior of the equity checks and balances will exist what impact will play its The original intention of the corporate governance effect? GEM as China’s emerging capital markets, the creation of far less than three years, but the development is unusually rapid, as of March20th,2012, GEM-listed company in Shenzhen Stock Exchange has reached300, the investment spending an annual growth trend year by year, the ownership structure of companies listed on GEM would be like? The efficiency of its investment? The impact of the equity of companies listed on GEM of checks and balances, its investment behavior? Will induce inefficient investment phenomenon? The extent of a non-efficiency investments and how? Based on this, this paper explores two aspects of the theoretical analysis and empirical test equity checks and balances on the impact of the investment companies listed on GEM non-efficiency. Of this study can not only provide a new approach, and encourage enterprises to continuously improve the efficiency of investment, the investment status of the companies listed on GEM and to follow-up studies can also provide new ideas, rich in relevant research in the field.Firstly, as defined in the GEM, the concept of non-efficiency of the equity of checks and balances and corporate investment, the characteristics of the companies listed on GEM, then reviewed and summed up the domestic and foreign equity balance and non-efficiency of investment theory and literature, is analyzed theoretically counterbalance the impact of investment on non-enterprise efficiency and demonstrated equity.Secondly, learn from the modified Richardson residual model to measure the non-efficient levels of investment and build a multiple linear regression model, using the financial data from2009to2010of153Chinese companies listed on GEM, this paper gives two ways of empirical research, this paper not only measures of GEM listed companies, non-degree of efficiency investments, but also examines the effect of the equity checks and balances on non-efficiency investments. Empirical measurement and display of test results:(1)the proportion of largest shareholder of GEM listed companies is not very high, and the equity balance is higher; The investment spending of GEM listed companies is growing year by year, and investment spending the whole show inefficient investment behavior, the more performance for the insufficient investment.(2) GEM listed company equity balance significantly affect non-efficiency investments. Over-investment has a positive impact on the equity balance degree of listed companies, equity checks and balances on corporate investment behavior does not play its due role of supervision and control, equity balance the higher the degree of the problem of insufficient investment may become more serious, this may be due interests of the controlling shareholder of the target are inconsistent, the bargaining between the controlling shareholder net present value project can not be positive by the resolution of the board, giving rise to the more serious the problem of insufficient investment.Finally, summarize the content, process and conclusions of the full text of research, and put forward countermeasures and suggestions for how to use options to balance the impact of investment on non-enterprise efficiency, and also pointed out the shortcomings and defects of this article for further outlook for the follow-up study.