Equity Restriction,Inefficient Investment And Corporate Performance

Enterprises,as an important part of modern business world,its healthy and rapid growth affect the steady development of the market economy,and the corporate performance is a key indicator of affecting the company's growth.Factors affecting the company's performance are many,economic,political,cultural,investment,financing,and operation,this article is from the perspective of equity restriction and inefficient investment to study its effect on company performance.Ownership structure is one of the key factors affecting corporate governance,equity restriction is an important aspect of the company's equity,equity restriction is a kind of stock right arrangement which is shared by several major shareholders to control the company.This model not only forms a single internal shareholder who can not control the major decision right independently,but also can keep the advantage of relative concentration.Increased supervisory cost of decentralization,improve the company's performance in this way.Investment is an important way to carry out normal business activities of enterprises,since the company's growth and reproduction enterprises to expand investment decisions are based,so investment decisions.affect the level of corporate profits and the level of performance,and efficient investment can improve company performance.Asymmetric information and agency problems that exist in the capital market so that companies generally produce inefficient investment behavior,overinvestment and underinvestment behavior occurs frequently,affecting the performance of enterprises.GEM emerging as China's capital market,although only seven years since its creation,but the development is very rapid.According to the Shenzhen Stock Exchange data shows that as of December 31,2015,the number of companies listed on the GEM in China has accounted for 28.18%of the total number of listed companies in the Shenzhen Stock Exchange,the GEM's total market value of the Shenzhen Stock Exchange has accounted for 23.68%.Year on year growth of 155.90%in 2014 has been achieved in operating profit and revenue growth,its development prospects and influence can not be underestimated.Because of the GEM market to market late,existing research article involving GEM listed companies is not much,but as an important part of China's capital market,the study of GEM listed companies is necessary.Based on the above background,this paper explores two aspects of equity restriction impact on company performance,inefficient investment impact on corporate performance,as well as the effect of equity restriction on corporate performance in the presence of inefficient investment from theoretical analysis and empirical test.First of all,this paper introduces the research background,theoretical significance and practical value of this paper,and summarizes and comments on the current situation of the research questions at domestic and abroad.It shows the main contents,methods and possible innovation points of this paper,indicating that the research of this paper has a certain significance.Then,the related concepts(equity restriction,inefficient investment,corporate performance)are defined,and then the three hypotheses are derived from the relevant theoretical analysis.Based on the assumptions made before,the paper defines the relevant variables according to the model,and describes the sample data by using the appropriate model.The empirical data are used to analyze the data of the listed companies,which is based on the data of China's GEM companies from 2010 to 2014.Statistic,correlation test and regression analysis to verify the correctness of the previously proposed assumptions,and draw the following conclusions:The equity restriction can improve the performance of the company in a certain range,that is to say,with the increase of shareholding,the performance of the company will increase first and then decrease;GEM companies generally exist in the inefficient investment behavior,and the inefficient investment will reduce the performance of the company;the majority of these companies are under-investment behavior,in the sample of the under-investment situation,there is no significant correlation between the indexes of the equity restriction and the performance of the company,but in the over-investment sample,the indexes of the equity restriction and the performance of the company was inverted U-type relationship,that is to say,with the increase of shareholding,the performance of the company will increase first and then decrease.This shows that the equity restriction to improve the performance of the GEM over-investment company more effective.The higher the operating income of the company,the better the operation of the company will have a corresponding effect on the company's performance,while the asset-liability ratio is too high will affect the performance of the company's performance.In this paper,the data are further classified and regressed again,and the results still support the null hypothesis that the result is robust.In the end,this paper analyzes the main conclusions of this paper,and puts forward feasible and pertinent suggestions,such as optimizing the equity structure of listed companies,rationally allocating resources to reduce the inefficient investment behavior of these companies,The information disclosure system of the listed company is designed to improve the performance of listed companies by means of improving the ownership structure of the listed companies,and points out the shortcomings of this paper and the places which we hope to improve,it provides an optimal perspective for future research.This study not only to our GEM listed companies how to improve the performance of the company to provide new measures to promote continuous healthy and rapid development,but also to follow-up studies to provide new ideas,enrich research in related fields.