Research On The Effect Of Managerial Ability On Enterprises' Investment Efficiency

Investment decision is the most important financial decision in the process of enterpriseoperation and management.It involves many aspects of corporate survival and development,such as corporate fundraising,resource allocation,strategic choice,and even related to the healthy development of the entire capital market.A large number of studies have shown that the phenomenon of inefficiency investment in enterprises is widespread,which is influenced by asymmetric information and the conflict of principal-agent.Therefore,the investment behavior of enterprises has aroused the wide attention of the academic circle,and how to improve the efficiency of investment has become a hot topic in the academic research.With the assumption of rational economic man is broken,more and more scholars begin to discuss the impact of management members' heterogeneity on enterprises' investment efficiency.Whether managers with strong ability will reduce inefficient investment behavior by their ability advantages or will have overconfidence and enhance their motivation to grab private interests and build "empire of enterprises" are worthy of research.As a key feature of management,whether the strength of managerial ability strength will affect the investment efficiency or not needs to be tested by empirical research.Base on a sample of A-Share listed companies listed in Shenzhen and Shanghai Stock Exchanges in the period 2011-2016,this research uses DEA-Tobit two-stage model to measure the managerial ability,T test and median rank sum test to analyze the differences in management ability between listed companies with different characteristics.Then this paper builds an OLS regression model to empirically test the influence mechanism of the managerial ability on the investment efficiency and further investigate the moderating effect of the social capital.The empirical results reveal that:(1)There are significant differences in the managerial ability between listed companies with different characteristics.Specifically,the managerial ability of manufacturing enterprises is significantly higher than that in non-manufacturing enterprises;The managerial ability of companies with large size is significantly higher than those companies with relatively small size;The managerial ability of the state-owned listed companies is significantly higher than that of non-state-owned listed companies;The managerial ability of companies in the eastern region is significantly higher than those in the midwest;The managerial ability of companieswith high management power is significantly higher than those companies with lower management power.(2)Managerial ability significantly affects the investment efficiency of listed companies.The stronger managerial ability of companies is,the lower degree of overinvestment and underinvestment,and the higher investment efficiency of companies have.(3)The quality of accounting information and the quality of internal control play parts of intermediary role in the process of the impact of management ability on enterprises' investment behavior.(4)The difference of social capital of management significantly affect the relationship between managerial ability and investment efficiency.The promotion of social capital can enhance the positive effect of management ability on enterprise investment efficiency.