The Research About The Influence Of Ownership Concentration And Earnings Management On Investment Efficiency Of Listed Real Estate Company

In recent years,the real estate investment in China has entered a new period of development.The investment activities determine the value of the real estate enterprise,and the efficiency of investment will directly determine if the real estate enterprises can make maximum value or not.As the representative of the comprehensive strength of China's real estate industry,the investment efficiency of listed Real Estate Company has a direct impact on the development prospects of the whole industry.Therefore,it is very important to study the investment efficiency of the listed Real Estate Company in China.The existing research shows that the ownership concentration and the earnings management have a significant impact on the investment efficiency of the listed companies in China.Therefore,this paper will combine the theory and reality to make a empirical study of ownership concentration and earnings management with the investment efficiency of China's listed Real Estate Company.First of all,this paper combs the research background,and clarifies the significance of this research.Then,this paper reviews relevant literatures on the impact of ownership concentration and earnings management to investment efficiency.Then this paper defined the relevant concepts,and make an detailed introduction of the principal-agent theory,information asymmetry theory and the behavioral company financial theory.On the basis of relevant theories,combined with the actual situation of China's real estate listed companies,this paper puts forward the research hypothesis.Then we design the empirical model of this paper,and use the modified Jones model and Richardson model to measure the earnings management and investment efficiency of the 102 Chinese listed real estate companies listed on the Shanghai and Shenzhen stock exchange between 2011-2016 years.Finally,based on the hypothesis,we use Stata14.0 to make an empirical analysis of the hypotheses.The main conclusions of this paper are as follows:(1)the influence of ownership concentration on the investment efficiency of listed Real Estate Company in China is mainly concentrated on the overinvestment,which has no significant impact on the lack of investment of the listed Real Estate Company.(2)The earnings information is one of the most important accounting information of the enterprise.The earnings management of the enterprise will lead to the overinvestment of the enterprise,or lead to the the lack of investment due to the financing constraints.(3)There is an interaction between ownership concentration and earnings management.The interaction between the two will reduce the investment efficiency of real estate listed companies.In the end of the paper,according to the conclusions of the research,we put forward some suggestions for the listed real estate companies in China,such as the proper decentralization of equity,the improvement of the quality of the accounting earnings information,the improvement of the information disclosure system for the controlling shareholders and the constraints of the design organization.This study not only widens the research perspective of the investment efficiency of the listed companies and enriches the theoretical research on the efficiency of the investment,but also helps the listed Real Estate Company to improve the internal governance environment through the ownership structure,and restrain the earnings management behavior to make scientific investment decisions,and improve the efficiency of the investment of the enterprises.