Study The Effects Of The Transfer Of Control On The Efficiency Of Investment

With the continuous development of market economy and capital markets, capital markets have become increasingly reflected its optimized resource allocation function, control as a very scarce resource, to optimize the configuration, and further optimization of the capital market and development and improvement of the market economy has played a key role. With the continuous development of China’s market power and perfection of the transfer of control of enterprises both in quantity and quality have made considerable development and continuous improvement. Especially from the country in 2005 since the implementation of the split share reform, the face of China’s state-owned capital strategic withdrawal, the transfer of control of listed companies has become an important way to expand the size of the listed company to achieve its long-term strategic objectives. Transfer of corporate control, due to the strong security shell and Paul with motivation, the new controlling party necessarily need to improve the efficiency and effectiveness of its operations, in order to maximize profits and shareholder value maximization, and investment decisions are company executives One of the most important decisions to make, because the company’s investment and financing decisions have a very significant impact on how much of their cash flow, or even related to the company’s future development. Therefore, the study of the transfer of control of listed companies in China impact on listed companies to invest in efficiency is particularly important.Firstly, the transfer of control of a listed company’s development process, elaborates the macroeconomic context of this study, then by domestic and foreign scholars have studied the literature summarized comb, summed the situation so far academia latest research. Secondly, this paper, the basic theory of control transfer, the transfer of control would affect the efficiency of investment theoretical analysis and empirical testing. Study, we first classical model by investing in efficiency, the company’s investment efficiency of sample empirical test; On this basis, in order to eliminate the impact of changes in China Accounting Standards for the findings of 2006, we chose in 2007 to between 2014 and listed entities listed entity controlling shareholders increase the proportion of the transfer of control, and in order to meet the need for multiple linear regression sample size, we excluded data points after the sub-sector annual sample size of less than 30 After the occurrence of a listed entity study the efficiency of investment change after the transfer of control. Secondly, according to the results of previous studies, we have acquired the company’s cash flows are classified according to their means, in a divided high free cash flow and low free cash flow after the two groups, comparative analysis of the impact event of the transfer of control of the target company. After deduction of multiple linear regression and a large sample of data related to the theory, the results show: the transfer of control of the company activities help to improve investment efficiency of listed entities, which can inhibit excessive or insufficient investment in their investment behavior, investment efficiency help enterprises optimize the allocation of resources to improve and maximize efficiency. Free cash flow in the distinction between the acquirer owned, got a different explanation.