An Empirical Study On Management Self-interest And Capital Investment

Capital investment is the company in the business management of an importantfinancial decision, the company is in financing, allotted dividend and other financial animportant basis for decision-making, it directly affect the company’s operatingperformance and development prospects. At present, many scholars both at home andabroad and entrepreneurs around the capital investment issues, made a lot of research,especially to the influence of the capital investment of subjective and objective factors,for a more in-depth research, but because of the social form, laws and regulations system,economic system and cultural background, etc factors, at present, in the academic circleon the influence factors of capital investment has not been formed unity of understanding.Nowadays in the world, many countries listed companies have different capitalinvestment problem, although our country with the further reform and opening, thesocialist market economy system improved degree of perfect, but there are still system isnot perfect enough, implementation is not determined, regulation is not in place, the listedcompanies in China is also faced with the problem of capital investment, particularly iscaused by the managers from the capital investment, by the managers from their owninterests, caused the company to appear over-investment and under-investment problems.Over-investment can make the company’s resources were waste, to bring company badloans increased risk, increase the company’s business risk, the company faced bankruptcyreorganization and the crisis; Under-investment can make the company’s resources willnot reasonable use, the company’s growth speed will be slow. Since the reform andopening up, China’s economy continued to maintain rapid growth, the vast majority oflisted companies are in a relatively short period of growing up, a lot of the company’smanagement has been used to the rapid growth of economic environment, in theirself-interest behavior, more is to over-investment problems appear, this paper is based onthe above thinking, the Chinese listed company from the management of capital investment, the over-investment problems are studied.Based on the Shanghai and Shenzhen A shares listed companies in China2007—2011data as samples, using theoretical analysis and empirical research method ofcombining the, systematically analyzes the listed company capital investment decision,the influence factors of constructing the expected capital investment model, regressiontest found that the listed companies in China is exist in the inefficiency of capitalinvestment. Based on this, the establishment of a manager self-interest and investmentexcessive impact model, through the regression test, it is concluded that managersself-interest and over-investment significant positive correlation, and excessive companyredistribute as state-owned holding listed companies and non-state-owned holding listedcompanies in our country, found managers self-interest and over-investment significantpositive correlation weakened in state-owned holding listed companies.