Research On The Influencing Factors Of Non-efficiency Investment Of Private Listed Companies On Growth Enterprise Market

The company's financial policies mainly include financing policies,investment policies,and distribution policies.Among them,investment policies,as the connecting point of corporate financing policies and distribution policies,are even more important to the firm.The quality of investment policies not only affects the efficiency of the company's resource allocation,but also is closely related to the company's operating risks,operating conditions,competitiveness,and growth.As private enterprises continue to grow and develop,the value of private enterprises is gradually discovered,and the issue of investment efficiency of private listed companies has also begun to be discussed and studied by the academic community.However,due to the impact of many factors,for example the development characteristics of private listed companies and the external environment,the inefficiency of private listed companies' investment is very serious.Efficient investment can promote the sustainable development of the company and maximize the value of the company.Non-efficiency investment will not only result in the waste of internal resources,but also restrict the healthy development of the enterprise and even the entire national economy.The research object of this paper is China's GEM private listed company between 2011 and 2016.It is based on free cash flow,principal-agent theory,information asymmetry theory,and behavioral finance,and sets the 18th National Party Congress as the dividing point.The samples were divided into two groups before the 18th and the 18th after the 18th,to examine the influencing factors of inefficient investment in different stages.Firstly,the sample data is brought into Richardson's expected investment model for empirical analysis,and the expected investment amount of each private listed company in the sample is calculated every year,which is the regression value of the expected investment model,and then the ratio of the expected investment amount to the actual investment amount.The size is used as a criterion to classify non-efficiency investments as underinvestment and overinvestment.If the ratio is bigger than 2,it is considered that the company has excessive investment problems.If it is less than 0.2,then the company's investment is obviously insufficient.If it is between 0.2 and 2,it is considered that the company's investment in the current year is efficient.The results showed that out of 834 samples,734 companies had non-efficiency investment problems,of which 727 were underinvested and only 7 were over-invested,which fully demonstrated that most of the private listed companies in China had insufficient investment.Second,using the over-investment and under-investment two-factor model,using correlation tests and multiple linear regression empirical methods,from free cash flow,asset-liability ratio,equity concentration,management shareholding ratio,business operating profit,and net assets From the angle of yield,we studied the influence mechanisms of various factors on the inefficient investment,especially underinvestment,and the degree of influence of the company before and after the 18th National Congress of the Party.According to empirical results,it was found that the debt ratio was positively related to the lack of investment,with the increase in asset-liability ratio.The degree of underinvestment in the enterprise will deepen,and the increase in shareholding concentration,operating profit,and the proportion of management holdings will inhibit investment shortfalls.Free cash flow and return on net assets are positively related to underinvestment before the 18th National Congress of the Communist Party of China.After the 18th National Party Congress,it became negatively related,which also indicated that the 18th National Congress,that is,government policy was also an important influencing factor for the inefficient investment of enterprises.Finally,in accordance with the empirical results,several points are proposed for private listed companies and governments.This article mainly has three innovations:First,taking China's private listed companies as the research object,China's current domestic research on non-efficiency investment focuses on state-owned listed companies.rake the private listed companies as research object,this discussion can enrich the relevant private enterprises.Corporate research.Second,the free cash flow,asset-liability ratio,equity concentration,shareholding ratio of management,and profitability of the company were combined to develop a study on the impact of non-efficiency investment by private listed companies in China.Compared with the previous literature,only a single aspect of the impact of the discussion,this article will be a combination of multiple influencing factors,multi-angle research non-efficiency investment in private listed companies,and further deepen the research of private enterprise investment issues.Third,based on the original research,the Party's 18th National Congress of the Communist Party of China was successfully brought into the study of the influencing factors of inefficient investment.Adding the influence of the national policy to the discussion is beyond the previous relevant literature,and it has also proved through empirical evidence that the national policy does have a significant impact on the investment efficiency of the company.