China’s Listed Companies Inefficient Investment Influencing Factors

Cyclical fluctuations in economic characteristics, many listed companies are not fully aware of this. Many of our listed companies did not invest the time to invest in accordance with the actual situation, making it inefficient investment. Such investments are mainly divided into non-efficiency of under-investment and over-investment types. Under-investment is a listed company does not choose to invest in the project NPV is positive, to give a good investment opportunity. Over-investment is a listed company choose to invest in projects with negative net present value, the cash flow for the project is not very good. The status of China’s listed companies investment research and analysis of the listed companies to invest in efficiency factors on the health of China’s economy is running has a good effect.Based on the first study, researchers domestic and foreign investment efficiency of listed companies listed companies will affect the efficiency of investment factors are divided into macro and micro factors influencing factors of two parts, the theoretical analysis of the impact on listed companies to invest in the efficiency of the various factor.Secondly, this paper factors under-investment and over-investment of listed companies theoretically level analysis, including free cash flow, financing constraints, ownership structure and agency costs. In a sample of listed companies in 2005-2013 for the study, of which the first four years of economic expansion, after a five-year period of economic austerity, the analysis of the different stages of the economic cycle efficiency of investment in non-listed companies phenomenon, in order to study macroeconomic factors impact on listed companies to invest in efficiency.Again calculate the extent of under-investment and over-listed companies to invest according to the calculation method of Richardson model, the results show the efficiency of listed companies to invest in the economic cycle and which related to the economic cycle contraction phase, low investment efficiency of listed companies; economic expansion phase, a listed company high investment efficiency. That macro factors will affect the listed company’s investment efficiency. Free cash flow, financing constraints, ownership structure, agency costs and other micro-economic factors will have some impact on the listed company’s investment efficiency. These micro factors in the macroeconomic environment, the different degree of influence on the efficiency of investment in listed companies: free cash flow, financial constraints at different stages of the economic cycle, the role of non-efficiency of investment in different ownership structure at different stages of the economic cycle has little effect, agency costs variable is not significant.Finally, according to research findings on how the efficiency of investment in non-listed companies to suppress the fluctuation characteristics according to the economic cycle, improve investment efficiency of listed companies made the corresponding countermeasures and suggestions.