An Empirical Study On The Relationship Between TMT Members' Personal Characteristic And Inefficient Investment Of Lisited Companies On Gem

Investment is one of the most important financial decisions,it plays a crucial role for development of corporate and realization of strategic objectives.As the link between financing and profit recovery,it determines flow of funds and mode of resource configuration,also influences capital market,so it is widely discussed by scholars.High quality investment can achieve the goal of maximizing shareholders' wealth,promote rational al ocation of capital as well as healthy development of stock market.However,inefficient investments exist in capital market,including overinvestment and underinvestment.former refers to projects with negative NPV,and latter with positive NPV.Inefficient investments harm investors' interests,hinder normal operations of companies,also have negative impact on stock market.As an important part of stock market,GEM develops fast,while problems arise,in which inefficient investments are contained.Investment are made by top management team(TMT)members,so their personal characteristic will influence investment preference and efficiency.According to such factors,exploring relationship between TMT members' personal characteristic and inefficient investments has theoretical and practical significance.The paper chooses listed companies in GEM as samples,which exist between 2013 and 2015.By calculating average and heterogeneity level of age?gender and education background to research relationship between TMT members' personal characteris it ic and inefficient investment.There are two steps to complete emperical analysis,firstly using Richarson's investment model to determine level of inefficient investment,then using empirical analysis to get conclusions as follows:(1)there are serious ineffic ie nt investment problems in GEM,and the main form is overinvestment;(2)average level of age?gender and educational background are positive with inefficient investme nt;(3)for all samples,heterogeneity level of gender and educational background make negative effection on inefficient investments,but age does not have remarkable effection;for overinvestment samples,heterogeneity level of age and educationa l background can influence inefficient investments negatively,and gender does not.the paper also give several suggestions to improve TMT's construction.