Research On The Influence Of Management Power,Social Responsibility Information Disclosure On Investment Efficiency

Investment is an important economic activity for enterprises to maintain normal operation and development.The level of investment efficiency determines the value of the company and the direction of future business strategy.Due to the information asymmetry and principal-agent issues in the company,the power of management has increasingly strengthened.Manager uses its own power to maximize personal interests by their inefficient investments,damaging the interests of investors and shareholders.On the one hand,manager will use the power to obtain monetary welfare or non-monetary benefits,control the setting of compensation incentives and increase the on-the-job consumption,resulting in inefficient investment;on the other hand,internal and external companies supervisory and control mechanism cannot play its due role along with the larger power of management.Manager uses its power to control the quantity and direction of capital investment in the field of social responsibility and select social responsibility information that is beneficial to the company's business development to disclose.The behavior misleads investors to make the correct investment decisions,ultimately affecting the collection of the enterprise funds and the operation of investment,and hindering the stable sustainable development of the enterprise.Therefore,this thesis will study the influence of management power,social responsibility information disclosure on investment efficiency.Research of this thesis enriches related theories about governance structure of the company,the social responsibility information disclosure and investment efficiency.At the same time,it lays a further theoretical support for the enterprises to actively fulfill the social responsibility,improve the authenticity and completeness of the social responsibility information disclosure and strengthen the supervision and control of the management in this thesis.The empirical analysis involves three aspects,firstly studying the influence of the power of the management on the investment efficiency,secondly studying the influence of social responsibility information disclosure on investment efficiency,lastly studying the mixed influence of the management power,social responsibility information disclosure on investment efficiency.This thesis adopts the chairman and general manager both concurrently in the same position,board size,ownership dispersion and executive compensation ratio to construct the integral variable of management power.The greater its value,the larger the management power.This thesis adopts the CSR Ratings score of the social responsibility of the rating agencies Rankins CSR Ratings to measure social responsibility information disclosure quality.The higher the score,the higher the social responsibility information disclosure quality.The residual value calculated by Richardson model is used to measure the level of investment efficiency.This thesis introduces related concepts of the management power,social responsibility information disclosure and investment efficiency,and summarizes related theories about the influence of management power,social responsibility information disclosure on investment efficiency at home and abroad,as well as the selection of measure method of indicators,setting research direction of this thesis.Based on the theory of management power,principal-agent theory and information asymmetry theory,this thesis puts forward three hypotheses.The management power is negatively correlated with investment efficiency;The quality of social responsibility information disclosure and investment efficiency are positively correlated;The increase of management power weakens the positive effect of social responsibility information disclosure on investment efficiency.Using the STATA econometric analysis software and the balanced panel data,as well as the method of multiple regression analysis,the correctness of the hypothesis mentioned in this thesis is proved.According to the conclusions of this thesis three suggestions are put forward.Firstly,the company should strengthen supervision of management power and promote the improvement of investment efficiency.Secondly,the company should improve the quality of social responsibility information disclosure and improve investment efficiency.Thirdly,the regulator will increase the regulation of relevant policies on corporate social responsibility information disclosure,and create a good market environment to encourage the disclosure of social information.This thesis chooses the Shanghai and Shenzhen A-share listed companies as research samples.But owing to the limited data of the social responsibility information disclosure,We drop the financial insurance industry and reduce the volume of data,making the data in our study incomplete.Due to the fact that the concept of management power is broad,this thesis adopts the chairman and general manager both concurrently in the same position,board size,ownership dispersion and executive compensation ratio to construct integral variable of the management power.But management power involves many aspects of corporate governance structure,and the selected indicators cannot comprehensively measure management power.So maybe a certain error is involved.This thesis adopts the CSR Ratings score of the social responsibility of the rating agencies Rankins CSR Ratings to measure social responsibility information disclosure quality.And the large management power will reduce the quality of the social responsibility information disclosure,the interaction of the two on the investment efficiency may be affected by the multicollinearity,which leads to the conclusion in certain deviation,affecting the conclusion.Social responsibility information disclosure involves many areas.There are differences in the amount and direction of money inputs in the performance of social responsibilities.The indicator of social responsibility information disclosure don't have unified standard to measure.Lacking of a more comprehensive index to measure the social responsibility information disclosure,there is a certain deviation of the conclusion.So,in the process of later further study for scholars,further refined measures for the social responsibility information disclosure quality is necessary,accurately reflecting the extent of the enterprise to fulfill the social responsibility and social responsibility information disclosure quality,promoting enterprises to strengthen social responsibility consciousness and improving the social responsibility of enterprises and the influence of industry.