Research On The Impact Of Social Capital Of Independent Directors On The Investment Efficiency Of The Company

In the process of company management,investment is a necessary activity,which affects the long-term and stable development of enterprises.To maintain a high investment efficiency,from the micro level of the enterprise,it can increase the value of the enterprise and promote the sustainable development of the enterprise.It can also promote the stable growth of the national economy.However,because of the influence of various factors related to enterprises,in the process of actual operation and management of enterprises,there will often be inefficiency investment problems such as overinvestment or insufficient investment.Independent director system is to alleviate agency conflict and information asymmetry.Independent directors mainly influence corporate governance through supervision and advice,and the governance of independent directors has become a hot topic in the research of corporate governance.On the basis of previous studies,this paper studies the relationship between independent directors and corporate investment efficiency based on social capital theory.The social capital of independent directors constructs the index system from three dimensions: horizontal,vertical and reputation.This paper puts forward hypotheses and establishes regression models,and selects 2008-2015 years listed companies as research samples.It is found that,in addition to the insignificant relationship between the lateral index and the underinvestment,the independent director's social capital and its sub index are both significantly negatively related to the overinvestment and underinvestment of the company,indicating that the independent director's social capital can indeed restrain the inefficiency investment of the company.Based on the vast territory of our country,the rule of law in different places is not the same,and it also has a certain influence on the efficiency of the company's investment.This paper also studies the adjustment function of the external factor of the rule of law to the relationship between the social capital of independent directors and the investment efficiency of the company,and finds that the independent director is in a relatively low level of rule of law.Social capital has a more significant impact on corporate investment efficiency.Therefore,it is suggested that the company should choose a social elite with a wide range of social,professional and experience to serve as an independent director.