Research On The Inefficient Investment Of Listed Companies In Small And Medium - Sized Enterprises

In recent years, with the development of economy, the small and medium-sized enterprises developed rapidly and made great achievement. Meanwhile, problems also exist.The problem of inefficient investment and Medium Enterprise Board listed companies is one of the problems. Due to information asymmetry in capital market some companies can not raise enough money, which lead to under investment. Small and medium-sized boards of listed companies seriously hinders the healthy growth of enterprises, which in turn damages the value of enterprises. Therefore, we can not ignore the inefficient investment of small and medium-sized listed company.This article first analyzes the background of the small and medium-sized boards of listed companies, according which explore the inefficient investment problem of the small and medium-sized boards of listed companies. Through the review of related literature at home and abroad and on the basis of free cash flow theory, information asymmetry theory and principal-agent theory, further study the problem of inefficient investment of small and medium-sized board of listed company. Under the background of market economy, information asymmetry becomes more obvious between investors and managers, which affects the financing behavior of companies,and then affects companies’investment decisions and policies.Moreover, small and medium-sized board listed companies’governance mechanism is not perfect enough which leads to the investment decisions lacking enough scientific basis.Besides,it also has great influence on companies’investment efficiency.This article studies the phenomenon,causes of inefficient investment and related fectors which cause inefficient investment on the basis of correlative theories. The article reveals the formation of inefficient investment of the small and medium-sized boards of listed companies,as well as provide basis for solving this problem.