An Empirical Study On The Relationship Of Social Responsibility,Economic Value Added And Over-investment Behavior In State-owned Enterprises

State-owned enterprises are the most important part in the China's economy system,which has made great contribution for the development of China's economy.However,with the development of economy and the problem of principal-agent problem,state-owned enterprises' investment efficiency is decreasing.In order to solve the problem of over-investment in state-owned enterprises,SASAC of China has carried out economic value added system in appraising the charges of state-owned enterprises.This solution has been carried out for 5 years and the real result of it needs to be tested.As we all know that the state is state-owned enterprises an important investor and government agencies can control state-owned enterprises in some extent.Therefore,state-owned enterprises' business activities will be under control of relevant government departments.And government departments will ask state-owned enterprises to finish some social responsibility.As a result,when look at EVA evaluation's result,we should not ignore an important factor which named social responsibility.This paper mainly researches how EVA evaluation affects over-investment behavior when state-owned enterprises take different degree of social responsibility.This paper selects relevant data of 347 central enterprises in 2009-2014,and then uses the method of multivariate statistical analysis to do the empirical analysis of the relationship between economic value added and over-investment behavior in state-owned enterprises.The results of the study show that:Firstly,economic value added can significantly reduce the level of over-investment among state-owned companies.Implementation of EVA performance evaluation can ease the principal-agent cost,reduce the influence caused by asymmetric information,restrain manager's investment behavior,and give effective incentive and restraint to the manager.Secondly,further studies find that economic value added can have more significantly influence in the level of over-investment in the state-owned enterprises which take less social responsibility.However,it is not significantly in state-owned enterprises which take more social responsibility.State-owned enterprises which take more social responsibility often consider the national responsibility and social responsibility in investment decision.It makes them give less attention in maximization of shareholders' rights and interests and it will lead to no significant inhibitory effect of EVA performance evaluation of over-investment.Based on the above conclusions,this paper puts forward that SASAC should continue the implementation of economic value added.In addition,SASAC can improve the plan of appraising according to the difference of social responsibility and enhance the effect of economic value added.Also state-owned enterprises should notice that even if they need to take more social responsibility,they should avoid over-investment.In this paper,we study the effect of EVA on the performance evaluation in China's.It can make SASAC and other relevant departments understand the effect of EVA performance evaluation policy implementation.In this paper,we also classify the state-owned enterprises' sample according to social responsibility.It opens up a new research direction of over-investment.