A Study On The Relationship Between Management Ability And The Efficiency Of Listed Companies' Investment

The rationality of enterprise investment has been a hot issue in recent years.It plays a decisive role in the growth of enterprises and even the economic development of a country.Investment efficiency will affect the efficiency of the allocation of resources across the economy at the macro,and affect the performance of the enterprise at the micro.Managers control enterprise investment and financing decisions directly as policy makers and practitioners.Managers with high ability can well predict complex industry economic changes,so that they can be able to timely adjust the investment strategy or planning countermeasures to cope with unexpected changes in advance.The ability of manager will directly affect the enterprise resource configuration,which affects the investment efficiency.In this paper,empirical research on the effect of manager ability to investment efficiency listed companies of manufacturing industry from 2010 to 2014 as the sample data.This paper measures manager ability by DEA-Tobit regression residual value and measure investment efficiency by the way of return to the salvage value put forward by Richardson(2006).Firstly,this paper set up the manager ability and investment efficiency of regression model,analyzed the influence of the manager ability for investment efficiency;secondly,the sample was divided according to the property and the life cycle of the enterprise.The empirical results show that:(1)The Management Ability of listed companies is negatively correlated with Inefficient Investment.(2)In non-state enterprises,Management Ability has a more significant impact on Inefficient Investment.(3)Compared with the declining enterprises,the negative correlation between Managerial Ability and Inefficient Investment is more significant.The study of this paper has important theoretical and practical significance: Manager Ability is seldom concerned in Investment Efficiency study,this paper make up the blankness in this subject;Helps the government to standardize the market of enterprise managers.