Study On The Effect Of Managerial Ability To Investment Efficiency Of The GEM

Investment is the important support to promote the economic development of our country.Investment efficiency will affect the efficiency of the allocation of resources across the economy at the macro,and affect the performance of the enterprise at the micro.Managers control enterprise investment and financing decisions directly as policy makers and practitioners.On the one hand,Managers of high ability can well predict complex industry economic changes,so that they can be able to timely adjust the investment strategy or planning countermeasures to cope with unexpected changes in advance.On the other hand,They are more inclined to release high quality accounting information,to make more accurate earnings forecast information,to improve the quality of surplus and maintain the good reputation and credibility in order to improve their competitiveness in the professional manager market,which reduce the degree of information asymmetry and agent cost.So the ability of manager will directly affect the enterprise resource configuration,which affects the investment efficiency.Existing research shows that there are higher agent costs between controlling shareholders and minority shareholders in the GEM,and the establishment of GEM does not lower the enterprise financing constraints because of improper utilization of the over-funds,which both enhance the investment cash flow sensitivity and invest inefficient.So it has a realistic significance to research the relationship between management ability and the investment efficiency.The emphasis on management ability will promote the development and perfect of Chinese professional manager market,which to some extent compensate for the imperfect capital market,and is more theoretical and practical significance to GEM in 2009 especially.In this paper,empirical research on the effect of manager ability to investment efficiency from the angle of investment cash flow impact,listed companies of GEM from 2010 to 2014 as the sample data.This paper measures manager ability by DEA-Tobit regression residual value Demerjian(2012)proposed and measure investment efficiency by the way of return to the salvage value put forward by Richardson(2006).Firstly,this paper set up the cash flow and investment efficiency of regression model,analyzed the influence of the cash flow for investment efficiency;Secondly,this paper join the product of the interaction term of manager ability and cash flow as a factor on the base of first mode,and coefficient symbol of plus or minus can illustrate the impact of manager ability on investment efficiency;Thirdly,The sample is divided into high and low financing constraints,overinvestment and underinvestment group to investigate the influence of financing constraints on investment efficiency,and whether manager ability can alleviate the financing constraints to prompt investment efficiency,using the same mode.The result indicates that investment efficiency has sensitivity to cash flow;higher manager ability can release this sensitivity;in the high financing constraints group,the cash flow are negatively related with inadequate investment,in low financing constraints set,cash flow are positively correlated with excessive investment;in the high financing constraints group,the ability of manager to inhibition of underinvestment cash flow sensitivity is more apparent,in low financing constraints set,the ability of manager to release overinvestment and cash flow sensitivity is more significance.Finally this paper summarizes the result of the empirical research,combined with the problems found during the research process,in line with to improve the manager ability and improve the investment efficiency as the goal,then put forward targeted suggestions.