Study On The Independent Director Network Embeddedness And Investment Efficiency Of Listed Companies

The investment decision-making and investment efficiency of enterprises play a decisive role in increasing the value of the enterprise.However,at present,the listed companies in China have the problem of low investment efficiency.Inefficient investment such as"over-investment" and "under-investment" are serious in many listed company,which has a very negative impact on the company.On the one hand,excessive investment will cause excessive bad debts on accounting statements.The reason for this is that managers will invest huge amounts of capital in project with negative net present value,causing excessive waste of production resources and production factors;on the other hand,insufficient investment will slow the growth of listed companies,threaten the survival and development of the company,and the interests of investors will also be damaged.Non-efficiency investment has become a key factor constraining the continued development and competitiveness of listed companies.Nowadays,social capital has become an important resource allocation method.Using social networks to find and use resources has become an important way for companies to seek development.Independent director governance has become an important branch of corporate governance research,but the results of existing research findings are inconsistent and even some of the conclusions are contradictory.It is necessary to continue to study in depth the mechanism of the influence of independent directors on the investment efficiency of listed companies.Therefore,based on the director network of "direct or indirect relationship between directors at the same time in the board of directors" as the starting point of the study,investment efficiency is taken as the investigation variable,and the balance panel data of 2011-2016 are selected and the Richardson model is used for the analysis of the fixed effect of the balanced panel data.Out of the investment level,the residuals are calculated based on the model to obtain non-efficiency investment indicators;the absolute value of the residuals calculated by Richardson model is taken as the explanatory variable to reflect the non-efficiency investment level,and then the network analysis software is used to analyze the large-scale social networks.Pajek measures the degree of network center,structure hole,and clustering coefficient of the independent director network of listed companies,and combines the company's life cycle to analyze the mechanism between the independent director network,the company life cycle,and the investment efificiency of listed companies.It was found that the higher the degree of network centrality and the lower the degree of structural constraint of the independent directors,the higher the degree of possession of structural holes and the higher the network clustering coefficient,the higher the investment efficiency of the company where the independent directors are located.During the mature period,the relationship with the independent director network embedding is more significant;the investment efficiency of the listed company during the growth period and the recession period is not significantly related to the embedding of the independent director network.Based on the research conclusions,the following suggestions are made:strengthen supervision and incentives for managers,improve the information disclosure mechanism,improve the norms of independent director systems,strengthen the supervision of securities regulatory agencies,and strengthen the education of management,and reduce the irrational behavior of management.The research results will provide theoretical support for improving the investment efficiency of listed companies and understanding the informal institutional reasons for improving investment efficiency.