The Impact Of Environmental Uncertainty On Non-Efficiency Investment

In the market environment,the environmental uncertainty faced by enterprises can be regarded as the uncertainty of the business environment caused by lack of market information,shortage of resources and insufficient professional ability of the operators.High environmental uncertainty will aggravate the degree of information asymmetry and the principal-agent problem within the enterprise,which makes it impossible for the enterprise operator to accurately evaluate the investment project,which ultimately leads to the inefficient investment behavior of the enterprise and damages the enterprise value.Therefore,how to deal with the problem of non-efficiency investment in enterprises under environmental uncertainty has received much attention in recent years.In recent years,the autonomy of enterprises to implement equity incentive plans has increased,prompting enterprises to gradually implement the equity incentive plan,but its implementation effect remains to be tested.Equity incentives promote the operators to consider the interests of the enterprises more in the process of investment decision-making,thus weakening the principal-agent contradiction between shareholders and operators.Ultimately reduce the company's inefficient investment behavior.Therefore,whether Chinese enterprises implement equity incentive plan can inhibit the non-efficiency investment behavior of enterprises under the influence of environmental uncertainty has certain research value and significance.Therefore,this paper first analyzes and explores its path of action based on the perspective of equity incentives,and empirically tests the inhibitory effect of equity incentives on the intensification of environmental uncertainty into the inefficient investment of firms.On this basis,the paper divides the equity incentive into the stock option model and the restricted stock model according to the incentive model,compares the differences between different equity incentive models,and provides empirical evidence for the implementation and improvement of the equity incentive plan.This paper first reviews the existing literature and research results of environmental uncertainty,enterprise inefficient investment,equity incentives and incentive models.Combined with information asymmetry theory,principal-agent theory,private cost and private benefit theory,and incentive theory,the logical relationship between variables is clarified,and then research hypotheses are proposed.Then,basedon the sample data of all A-share listed companies in China's financial insurance industry from 2011 to 2015,empirical analysis was conducted to test the relevant assumptions.Finally,based on the empirical results,the conclusion is drawn: First,the environmental uncertainty is positively related to the over-investment and under-investment of the enterprise,that is,the environmental uncertainty will aggravate the non-efficiency investment behavior of the enterprise.Second,the implementation of equity incentives by companies helps to curb the increasing effect of environmental uncertainty on non-efficiency investments.Thirdly,after the model of equity incentives implemented by enterprises is divided according to the model,it is found that compared with the restricted stock model,the implementation of stock option model has stronger inhibition effect on corporate inefficient investment behavior caused by environmental uncertainty.In the course of the research,the paper also found that the two models have stronger inhibition on the enterprise's investment than the enterprise's excessive investment.The innovation of this paper lies in the innovation of research perspective and the division of equity incentive model in the research process.Based on the existing research,this paper not only studies the effect of equity incentives on the relationship between environmental uncertainty and non-efficiency investment,but also further divides the equity incentive elements into restricted stock incentive models and stock option incentives according to the model.The model explores the difference between the different incentive modes and the relationship between environmental uncertainty and non-efficiency investment,and observes the overall differences between the different models in the over-investment and under-investment of the enterprise,and expands the relevant equity incentive model and Research on the economic consequences of environmental uncertainty.In summary,the significance of this paper is to enrich environmental uncertainty and equity incentives.The existing research on non-efficiency investment of enterprises provides new ideas for studying the incentive effect of equity,and provides theoretical basis and empirical reference for enterprises to formulate and implement equity incentive plan and national perfect equity incentive system.