Research On The Influental Factors Of Inefficient Investment Behavior On GEM

No matter to an enterprise or a country, the behavior of capital investment is the most important foundation for accumulating wealth and forming reasonable financial structure. For enterprises, the investment behavior of the decision will affect the enterprise production operation situation, the allocation of resources and financial decisions, it produces the result will directly affect the performance of the business, the profit ability and development prospect. The listing Corporation investment activity is directly related to the growth of future cash flows, which further affects the survival and development of enterprises, but also indirectly affect the efficiency of resource allocation of the whole society.Since the reform and opening up, China’s rapid economic development, the comprehensive economic strength and constantly improve, as have an important effect on stimulating economic growth is one of the three carriages--investment plays a vital role. However, because of China’s capital market is still not perfect, the influence of asymmetry information and agency conflicts and other factors, the emergence of inefficiency investment phenomena to a certain extent the listing Corporation management process, to produce serious effect of this phenomenon in the economic development of our country, there are some negative effects to the listing Corporation and the long-term operating efficiency development. These are urgent problems.China’s emerging capital market-Shenzhen gem, since it was established only 5 years time, has developed very rapidly. As of December 31,2014, in the Shenzhen GEM listed company has reached 406, a total of 246985000000 yuan to raise funds. But gained rapid development at the same time, there are a lot of problems in recent years do poineering work board the company, such as the problem of inefficient investment of the growth enterprise market of listing Corporation. Because of the separation of ownership and control, the listing Corporation generally exists the principal-agent problem, at the same time, the capital market also exists the problem of asymmetric information, the existence of these factors makes the emergence of non efficiency of investment listing Corporation. Investment is a necessary condition for growth of any enterprise, inefficiency investment do pioneering work board appeared in listing Corporation has seriously hindered the healthy development of enterprises, and damage to the enterprise value and shareholder interests. At the same time will also affect the healthy development of the capital market, therefore, the problem of inefficient investment GEM Listing Corporation can not be ignored.This paper conducts the research separately from two aspects of theory and empirical research on the gem related factors affecting the efficiency of investment. The research in this paper not only points out the related influence factors of China do poineering work board the company inefficiency of investment, but also provides the corresponding suggestions on the present situation of the gem investment listing Corporation, also points to new directions for further research.This paper defines the concepts of inefficiency of investment, excessive investment and insufficient investment, then has reviewed the principal-agent theory, asymmetric information theory and the free cash flow theory, the enterprise’s overinvestment and underinvestment are analyzed in theory, and it also elaborates the domestic and foreign scholars and the relevant theoretical research achievements.Secondly, in this paper, the characteristics and development status of Chinese GEM Listing Corporation were introduced, the problem of inefficient investment leads to do poineering work board of listing Corporation, and through the literature review and theoretical research results accordingly, from the theory of the growth enterprise market of listing Corporation for the analysis of inefficiency of investment. Do poineering work board listing Corporation causes inefficiency of investment, there are two main, namely the company governance mechanism is not perfect and asymmetric information.Once again, on the basis of the theory of our predecessors and Chinese do poineering work board the market has its own characteristics, this study adopts the method of theoretical and empirical on the growth enterprise market of listing Corporation inefficiency of investment. In order to measure the GEM Listing Corporation under investment and over investment level, this paper selects 153 ChiNext companies listed before December 31,2010, in the 2011-2013 years of financial data and other related data for the study sample, based on Richardson (2006) of the expected investment model, the establishment of the second board market expected investment model and multiple linear regression analysis gem, that listing Corporation under investment and over investment degree. Then introduced the influence degree of free cash flow, short-term debt, agency costs and ownership concentration variables to study these factors on the excessive investment and insufficient investment. The research results show that, the free cash flow can significantly improve the gem’s level of investment, promote the excessive investment, inhibit underinvestment; short-term debt could significantly reduce the listing Corporation’s investment level, curb excessive investment, promoting investment shortage; agency cost and excessive investment has a significant positive correlation, but not significant relationship with insufficient equity investment; concentration and excessive investment also has a significant positive correlation, the same to the lack of investment is not significant.Finally, the research content and the research results to make a summary, and put forward the corresponding countermeasures and suggestions according to the present situation of the gem investment listing Corporation, also points out the limitations of this paper, future research direction.