The Corresponding Relation Research Between Corporation Governance Characteristics And Investment Efficiency

Investment decision is one of the most core contents in modern company financeactivities and the increase of enterprises’ actual value depends on investment decision andits efficiency, as investment efficiency is an important basis for investment decision. Sodoing evaluation research on investment efficiency is quite vital to enterprise development.At present, there is a general phenomenon of emphasis on financing, neglect oninvestment and efficiency in Chinese listed companies. Referring to the exploration of theroot causes of low investment efficiency, most experts and scholars think that corporategovernance characteristics affect the enterprise investment efficiency, thereforesystematical research on corresponding relations between corporate governancecharacteristics and investment efficiency and improving the investment efficiency is greatpractical significance for the enterprise growth.Firstly, this paper has a literature review of the past domestic and foreign research onthe investment efficiency of listed companies and its relationship with corporategovernance and the expounds the theory of corporate governance and corporategovernance characteristics. Corporate governance features include four aspects: theownership structure, the structure of the board of directors, the structure of the board ofsupervisors and the managers. This article selects three indexes including the share ratio ofthe largest shareholder, the state-owned holding proportion and ownership balance degreeto represent the listed company ownership structure; it uses three indexes including thenumber of independent directors and its proportion in the board of directors of the scale,whether the chairman of the board and general manager hold a concurrent post andunpaid directors proportion to show the characteristics of directors of the listed company; itchooses two indicators the scale of the board of supervisors and unpaid supervisorsproportion to indicate the characteristics of the board of supervisors in listed company;then year, operation of extraordinary shareholders’ general meeting and average ability senior executives mean executive layer. According to the eleven indexes of corporategovernance and their logical relationships with investment efficiency, the paper come upwith corresponding research hypothesis. With the application of envelopment analysis thepaper then evaluates the investment efficiency of sample data for and has a correspondentanalysis on the evaluation of value of investment efficiency and factors of corporategovernance. The results show that in equity structure the enterprise investment efficiency isrelatively high when the balance degree of ownership is high, state-owned shareholdingratio is low and the first controlling shareholder shareholding proportion is low. When inthe board of directors structure, the enterprise investment efficiency is higher when theproportion of the independent directors is large, chairman of the board of directors does notconcurrently be general manager and the directors in the board that don`t take salary in lessnumber. In the board of supervisors structure, the enterprise investment efficiency is betterwhen the scale of supervisors in board is appropriate, supervisors in the board that don`ttake salary are in less number. Given the shareholder`s meeting operation,if the attendancerate of annual general meeting and extraordinary shareholders`general meeting is more,enterprise investment efficiency will be higher. It also enhances enterprise investmentefficiency if the average education level is higher in management layers. The results aim tohelp the listed companies improve the investment efficiency and increase enterprise valuefrom the angle of corporate governance.