Financial Strategy And Corporate Investment Efficiency

Investment,as the basis for sustainable development of enterprises,occupy a notable position in the economic activities of enterprises.The efficiency of investment directly affects the future operation and development of the enterprise.Due to the asymmetry of information and principal-agent problem,enterprises tend to deviate from the optimal level of investment,Leading to overinvest and underinvest.Inefficient investment will result in a waste of social resources and cause losses to shareholders.So,how to improve the efficiency of investment is the most urgent question.Financial strategy is one of the influencing factors of enterprise investment efficiency.So whether the corporate financial strategy affect investment efficiency?And how does the corporate financial strategy affect investment efficiency?This paper will conduct an in-depth analysis of this.This paper combs the relevant literature on financial strategy and investment efficiency,clarifies the evaluation and measurement methods of financial strategy,and the measurement method of investment efficiency.On this basis,firstly define the related concepts involved in this paper,and then combine Strategic management theory,information asymmetry theory,principal-agent theory and investment efficiency theory,etc.,theoretical analysis of the relationship between financial strategy and investment efficiency,and the introduction of property rights and profitability are two possible financial strategies Variables that have an impact on the relationship between investment efficiency and in-depth exploration and put forward more reasonable assumptions.In the empirical research section,this paper selects the data of five years of listed companies in the Shanghai and Shenzhen A-share manufacturing companies as research samples.For the measurement of financial strategy,based on the previous research results,from the four dimensions of financing,investment,fund operation and dividend distribution,10 variables are selected to describe the financial resource allocation structure of the enterprise,and then a basis is constructed.The discrete variables of the summation measure the choice of financial strategy tends to be radical or robust.For the measurement of investment efficiency,this paper will refer to the Richardson investment efficiency model for regression,and use the residuals obtained by regression to judge the over-investment and under-investment,so as to conduct an ermpirical study on financial strategy and investment efficiency.This paper also introduces case analysis,selects BOE in the manufacturing,computer and communication and other electronic equipment manufacturing industry as the specific case analysis object,and joins Tianjin Pulin as the comparison object,through the specific analysis of the enterprise,from the actual case The perspective of the study hypothesis and empirical results is tested.The research in this paper draws the following conclusions:The more radical the financial strategy,the more likely it is to lead to excessive investment;The more stable the financial strategy,the more likely it is to cause insufficient investment;Compared with non-state-owned enterprises,the radical financial strategy of state-owned enterprises is more likely to cause excessive investment.Compared with state-owned enterprises,the stable financial strategy of non-state-owned enterprises is more likely to cause insufficient investment.For state-owned enterprises,the impact of profitability on financial strategy choices and investment efficiency is not significant.Since the existing literature on financial strategy and investment efficiency is not rich enough,this paper first studies the relationship between financial strategy and investment efficiency,and then on the basis of the two possible influencing factors of property rights structure and profitability,Exploring the impact of the relationship between financial strategy and investment efficiency has positive implications for improving investment efficiency.