Research On The Impact Of Network Location Of Independent Directors On Investment Efficiency Of Listed Companies

As the main force in the development of national economy of listed companies in China,the investment efficiency affects the survival and development of enterprises.In order to improve the investment quality of the listed companies,improve the investment efficiency of the listed companies,and strengthen the supervision and restraint to the managers,In 2001,our country promulgated "the guidance opinion on establishing the independent director system in the listed company",hoping that the independent director can play a role in the corporate governance and supervise and restrain the behavior of the management.In the current development of enterprises,independent directors,as supervisors and managers of modern enterprises,play an important role in the high or low investment efficiency of the company.In addition,with the gradual development of social network analysis methods,the director network has become an important channel for resource interaction and information transmission between companies.Independent directors embedded in the network relationship of directors can absorb heterogeneous resources and diversified information based on their network position,which has a positive impact on corporate governance.Therefore,through the relevant theoretical analysis and empirical research,this study will explore the impact of the network location of independent directors on the investment efficiency of listed companies in order to provide scientific and effective support for improving the investment efficiency of listed companies.Firstly,this paper reviews the relevant research literature on the director's network and investment efficiency,and clarifies the theoretical basis of the research.Based on the relevant theories,analyzes the impact of the independent director network location(network centrality and network structure hole)on the investment efficiency,and whether the impact of independent director network location on the investment efficiency of the company will change based on the property right nature.On the basis of theoretical analysis,the research hypothesis of this study is put forward.And then to China's Shanghai and Shenzhen A shares of listed companies as the research object,to serve as independent directors as network nodes,with the listed company as the network connection,construct its director network using social network analysis of Pajek software,and to determine the location of all independent directors in the board of the network(network centrality and network structure hole).Then using the processing center 2012-2016 years of data obtained 7343 effective data as the research sample,using multiple linear regression analysis method,analysis of the impact of network position of independent directors on investment efficiency of listed companies in the whole sample and based on the property of the sample is divided into state-owned enterprises and private enterprises of two kinds of samples under the impact of the two re inspection change.Empirical research shows that the centrality of independent director network has a negative and significant impact on inefficient investment.The results show that the center degree of independent director network has a negative and significant influence on the company's over-investment and under-investment respectively.Similarly,the impact of independent director network structure hole on the company's non-efficient investment is also negative and significant.It shows that the more the structure holes occupied by the independent directors,the more the inefficiency investment of the company can be restrained,but mainly reflected in the reduction of the underinvestment behavior of the company.The effect of independent director network governance on the investment efficiency of private enterprises is significantly higher than that of state-owned enterprises.To make full use of the bridge function of the network structure of independent directors to strengthen the strong link relationship of listed companies,To increase the investment efficiency of listed companies,we can employ independent directors who can enhance the position of the company network and reasonably weaken the government's intervention in the decision-making behavior of the company in order to improve the investment efficiency of the listed companies.It is expected that the proposed countermeasures can effectively reduce the inefficient investment behavior of listed companies.