Research On The Evaluation And Affecting Factors Of Investment Efficiency Of Firms Listed In SME Board

The establishment of SME board developing rapidly but in a short period of time is of great benefit to financing of small and medium-sized enterprises listed in SME board whose listing standards are equal to those of firms listed in Main board.However,several characteristics including small size,high growth,high risk and high concentration of shareholding bring many problems to SMEs with itself developing.First,as a kind of private enterprise,most of the SMEs restructuring from Family firms own the defect in inner management system,which decreases investment efficiency.In addition,because of the property of small size increasing the cost of financing,the act of financing is infrequent,which causes the short of capital so that the opportunity of investment is lost.Therefore,it is necessary to evaluate the investment efficiency.Methods of evaluation of investment efficiency vary from research to research,while measure of valuation of investment efficiency in this essay is combination of Grey Relational Analysis and DEA models.Further,based on the method of Tobit model,affecting factors having impact on investment efficiency are studied to find out the reasons of low investment efficiency of SMEs and provide strategies related to improving efficiency.The samples of 191 companies,over a period of time from 2009 to 2012,are selected from listed firms in SME board to focus on researching valuation and factors of investment efficiency with Grey Relational Analysis and DEA,Factor Analysis which reduces the degree of multicollinearity and Tobit model.The results come out that first,investment efficiency of SMEs,including low pure technical efficiency and scale efficiency with returns to scale increasing,is generally low and keeps decreasing in process of time.Then,each of factors,Shareholding concentration,profitability,salary incentive,equity incentive,and growth,has a positive impact on investment efficiency while each of factors,agency cost and board structure,has a negative impact on investment efficiency with profitability having the greatest influence,and growth exerting greater influence than each of rest factors,Shareholding concentration,equity incentive,agency cost and board structure doing.Finally,based on these results,strategies are made to improve the investment efficiency of SMEs.