A Study On Over-investment Behavior Of YinXing Energy Listed Company

Based on related theories of overinvestment,this paper draws on existing research results and research methods in domestic and abroad to select Yinxing Energy as the research object,and conducts an over-investment measurement of the company.This article studies the over-investment behavior of Yinxing Energy Company.Firstly,Tobin Q method and discretionary expenditure judgment method were used to measure the scale of overinvestment of the company.It was found that the investment of Yinxing Energy Company was inefficien.The analysis of the over-investment factors of the Yinxing Energy Company reveals that it is the result of the relationship between the profitability of the company,the level of debt repayment,and psychological factors of the manager.In addition,the government supportion,and expansion of the company's own business scope have all contributed to the company's investment spending.In view of the excessive investment in Yinxing Energy,this article mainly proposes the following countermeasures:From the internal perspective of the company,the company should strengthen the corporate governance mechanism,improve the investment decision-making process,adjust the industrial structure,improve the market competitiveness and appliy capital to corporate R&D and technology.From the external perspective,on the one hand,it is necessary to strengthen the role of the government,on the other hand,exerting the supervision role of financial lending institutions and avoiding blind loans also can inhibit the excessive investment of enterprises.