Research On Impact On The Non-efficiency Investment By The Board Of Directors Structure And Behavior

The non-efficiency investment of enterprises widespread in china,Which do great harm to the enterprise value. Throughout, principal-agenttheory and information asymmetry is the main reason for the efficiency ofinvestment, however，the board of directors is the core of the company’sinternal management, the healthy and efficient operation of the board canreduce agency cost, effectively solve the problem of inefficientinvestment.Since good board mechanism can effectively reduce the efficiency ofinvestment behavior, then what affect the operation of mechanism of theboard of directors can affect inefficient investment. In the board ofdirector governance mechanism research, a lot of research ignored theboard behavior, only starting from the structure to study the board ofdirectors, which is based on the principal-agent theory. But this paperargues that when we use the stewardship theory and resource dependencytheory to explain of board of directors duties positioning, we found thatthe board of director act is more associated with the efficiency ofinvestment. Thus, this paper studies how the structure of board ofdirectors and behavior affects the efficiency of the enterprise investmenttheory. On the basis of theoretical analysis, selecting the four structure ofboard of directors and the five act of board of directors variables, and using data of the Shanghai listed company to empirical test for theproblem. the total sample is divided into underinvestment andoverinvestment group by residual analysis, then, through multiple linearregression test how the board structure and behavior variables affectedthe investment shortage and excess.The results show that the board of directors behavior on the impactof the efficiency of investment is greater than the structure of board ofdirectors.and the board of directors structure and behavior influences theinvestment shortage and excess is not exactly the same, At the same timein order to reduce the efficiency investment,we shall improve all aspectsof board governance,including optimize the structure of board ofdirectors, strengthening self-governance of board of directors, improvethe incentive system of board of directors and disclosure, and strengthenoversight of board of directors.