Research On The Factors Of Inefficient Investment Of Stated-owned Listed Companies

State-owned enterprises are the pillar of our national economy, and play with a dominant position in the key fields of the national economy. In the middle of March2013, the SASAC is working to develop guiding opinions in order to deepen the reform of state-owned enterprises, relevant research will pay attention on state-owned enterprises’reform direction and the next step of development. To improve the state-owned enterprises’value is the goal of reform, as we all know, there is a close relationship between corporate value and investment efficiency. However, in the the state-owned listed companies in the prevalence of the inefficiency investment, manifested as the underinvestment and the over-investment. Underinvestment in refers to the the companies give up the positive NPV project. Over-investment refers to the company will investment in the negative NPV project. So Through the analysis of the current situation of investment efficiency in state-owned enterprises and put forward the related proposal have important meaning to promote the healthy operation of the sustainable development of China’s economy and the capital market.First, combined with the basic situation of state-owned enterprises, summarized the domestic and foreign scholars to study the investment efficiency. Then from the aspect of theory, analyzed the various factors which would affect the inefficient investment. Through the data analysis, from a quantitative point of view to analyze the mechanism of various factors.Secondly, classified the inefficient allocation of capital into the underinvestment and overinvestment two cases. Then from the free cash flow, ownership structure, capital structure, the point of government intervention to find the factors that cause inefficient investment.Thirdly, in the empirical part, use the Richardson model to measure the efficiency of inefficient investment. The major factors of inefficient investment include the free cash flow, the current new long-term debt levels, the proportion of the largest shareholder, government intervention and macroeconomic. Balance and check policy and increasing the proportion of independent directors in the board of directors could inhibit inefficiency investments.Finally, puts forward the corresponding policy recommendations from micro and macro level to improve the efficiency of investment in state-owned enterprises, to inhibit the inefficiency of investment, to guarantee the healthy and sustainable development of state-owned enterprises.