Accrual Volatility, Characteristics Of Internal Governance And Over-investment

In recent years, many industries in our country, the phenomenon of the overheatedinvestment, inefficient investment behavior of listed companies caused widespreadconcern.The excessive investment behavior of listed companies is essentially a kind ofinefficient investment, in the long run is not conducive to sustained and healthy developmentof the company and even endanger the survival of enterprises.In addition, excessiveinvestment is often not necessary to the enterprise development, the management of listedcompanies of excessive investment motivation is not pure, selfish motives are often the mainmotivation.Explore blind expansion, and, therefore, leads to excessive investment enterprisescarry on deeper reasons behind and the control and guide, become a problem to be solved.Studies have focused on the nature of property right, debt constraint, dividend policy,free cash flow and other factors on the research on the effects of excessive investment, butvolatility characteristics of the accrued items on the impact of excessive investment did notget the attention they deserve.This paper argues that the internal characteristics andenvironmental factors can really grasp and exert important influence, therefore this articlefrom the accrued volatility is an important internal factor to study the influence on excessiveinvestment.This article selects the A shares in2010-2012, A total of2524listed companies assamples, the empirical study found that accrued volatility has significant positive influence tothe excessive investment.Further study found that the influence of different levelmanagement stake, two separate situation, the degree of ownership balance and number ofboard meeting on both were significantly weaken the role of positive correlation, that is, fromthe overall point of view, the main characteristic of internal governance related variables ingovernance in meter wave caused by serious over-investment problem plays an importantrole.In this paper, we study to curb the excessive investment behavior of listed companies toprovide a theoretical reference and policy suggestions, help to reduce the investment risk oflisted companies, improve the efficiency of investment, increase the value of the companyand shareholders’ wealth and also give consideration to other stakeholders.