The Research On Investment Efficiency Of China’s Listed Companies

Corporate investment is not only the guarantee for business’s long-term survival and development, but also a major incentive for the sustainable development of economy. While inefficient corporate investment has severely restricted the healthy development of China’s economy during the crucial time when China upgrading the industrial structure and deepening the reform of state-owned enterprises.Industrial policy is one of the main methods for government to readjust industrial structure and promote industrial upgrading, which plays a critical role in the process of monitoring the market failure, protecting and fostering infant industries, and promoting scientific and technological innovation. Especially in the context of China’s conditions, industrial policy means more to government. Actually, China’s economy, which under the guidance of Keynesian Economics, did not experienced a perfect period. Thus the government failure theory developed by public choice school spawned, who hold that industrial policy works little and even hinders the increasing of productivity. At the same time, scholars at home also came to a conclusion that China’s industrial policy is invalid.State-owned economy has been the mainstay of our national economy since1949and has made great contributions to China’s modernization. However, the problem of inefficiency of stateTowned enterprises has become more obvious nowadays. So, many scholars made deep studies on this question from the angle of enterprise governance structure, principal-agent theory and act of government.Though industrial policy and nature of enterprise both affect the efficiency of corporate investment, most scholars at home just studied on it from micro level or single aspect, literatures that combine industrial policy and the nature of enterprise are very rare. This article studied the influence of industrial policies on diverse enterprise by using data of A-share listed companies during the eleventh five-year period and the twelfth five-year period.To demonstrate clearly, theoretical analysis, empirical analysis and comparative analysis were used. This essay first introduced the theory of efficiency of investment, industrial policy and state-owned enterprises, then comparatively analyzed the influence of industrial policies on diverse enterprise on the basis of a model.The limitation of this paper lies in that industrial policies of governments at all levels were not taken into consideration since the content and effect of different industrial policies may differ from each other.The structure of this paper is as follows. Chapter1detailed introduced the background and frame of research. Chapter2defined the concept of industrial policy and sorted out relevant theory of the implementation of industrial policy. Chapter3made a research on the factors that influence the investment efficiency of listed companies and further more generated a hypothesis. Chapter4analyzed the effect of industrial policy and nature of enterprise on the efficiency of corporate investment. The last chapter came to a conclusion and put forward some practical suggestions.