Impact Of Technology Independent Directors On The Efficiency Of Investment

In the modern corporate finance activities, investments, financing and distribution are the three core activities. With the continuous development of China’s capital markets and maturation, how to improve and enhance the efficiency of investment has become increasingly common issues faced by each company. However, for various reasons, in China’s capital market, compared with financing and distribution activities, investing activities did not get enough attention. For a long time, especially in the past two years, more and more companies interested in a lot of financing in the capital markets, dubbed the "misappropriating" actions. But, fundamentally, investing activities is the way to create value for the company. after the completion of the financing, if investment funds did not achieve the desired output results, financing has lost its original meaning, and there is no way to talk distribution activities. Inefficient investment problem has been puzzling China’s listed companies, for a long time, foreign scholars have tried to explain low efficiency reasons of listed companies in all aspects.But the impact of Technology independent directors on the efficiency of investment research is relatively scarce. Technology independent directors is the combination of "technical director" and "Independent Directors", they can use their technical skills and deep expertise to support and monitor the company’s management in the direction of the industry, technological innovation, production equipment and other fixed assets investments, enabling the company to grasp the direction of technology innovation. According to resource dependence theory, Technology independent directors can play a role in the procurement, R&D and other aspects of long-term fixed assets, for example, production equipment. They can provide advice and direction for Major issues of the company, for example, the development of the company’s technical strategy, technological innovation, industrial investment, and so on, improving the company’s industrial investment effectiveness.In this paper, we choosed 2008--2014 years of financial data of China’s A-share non-financial listed companies as the sample data, checking the impact of Technology independent directors on the efficiency of investment through theoretical analysis, hypothesis, empirical test steps. Firstly, we detailed the technical literature of independent directors and investment efficiency, and analyzed related basic theory, then we proposed three hypotheses. We carried on the statistical description using STATA13 software and analyzed the sample data using Pearson correlation analysis and multiple regression equation model. The empirical results confirmed the hypothesis of the article three, drawn three major conclusions,they are:1. the setup of Technology independent directors will help the company improve investment efficiency. 2. Improving the salary of technology independent directors can have a significant incentive to them to promote them to provide advice and direction for Major issues of the company to improve the company’s industrial investment effectiveness. for example, the development of the company’s technical strategy, technological innovation, industrial investment, and so on. 3. improving the proportion of Technology independent directors will help companies invest in efficiency. Finally, based on empirical findings, we put forward relevant policy recommendations and pointed out the shortcomings of the research of this article. And look into the future of how to research the relationship between Technology independent directors and investment efficiency.