Research On The Impact Of Market Competition On Enterprise's Non-Efficient Investment

Since the market-oriented reform,China's economy has grown rapidly.According to the data of the State Administration of Statistics,China is now the second largest economic entity in the world,and the growth rate of gross national product(GDP)ranks first among the countries with high growth.However,behind this super-high economic growth rate,there is a low quality of economic growth.It mainly depends on the extensive economic growth mode of "high input of resources,high pollution of the environment",which hides a very serious phenomenon of inefficient investment.At present,China is actively promoting the transformation of the mode of economic growth,requiring a return to the quality of economic growth and improving the efficiency of resource allocation.As far as micro-enterprises are concerned,how to reduce inefficient investment and improve the efficiency of capital allocation at the critical moment of the transformation of economic growth mode is very important.In this paper,market competition,an external governance mechanism,is taken as a starting point to explore its impact on inefficient investment of enterprises.At present,scholars mainly discuss the governance of inefficient investment from the internal perspective,but seldom from the external perspective.From the perspective of market competition,most of the time,it is regarded as a situational factor.There are few scholars who directly study the relationship between market competition and inefficient investment.Moreover,few scholars study the impact of enterprise competitive position on inefficient investment from another dimension of market competition.This paper also considers the dual dimensions of market competition(industry competitiveness and enterprise competitiveness),examines the impact of different dimensions on inefficient investment,and further examines the interaction between the two dimensions on inefficient investment.Based on the data of listed companies on Shanghai and Shenzhen A-share motherboard from 2012 to 2017,this paper draws the following conclusions through multiple regression analysis: in the whole sample,there is a positive correlation between the competitive position of enterprises and inefficient investment,and there is a negative correlation between the degree of industry competition and inefficient investment,and the degree of industry competition will weaken the relationship between the competitive position of enterprises and inefficient investment.Positive relationship.The whole sample is further divided into overinvestment group and underinvestment group.In underinvestment group,the degree of industry competition is negatively correlated with underinvestment,but there is no significant correlation between the competitive position of enterprises and underinvestment,which indicates that enterprises with high competitive status may be more inclined to overinvestment than underinvestment.In the over-investment group,the competitive position of enterprises is positively correlated with over-investment,and the degree of industry competition is negatively correlated with over-investment.The interaction between industry competition and enterprise competitive position on Over-investment shows that the degree of industry competition weakens the positive relationship between enterprise competitive position and over-investment.