The Influence Of The Entrusted Financing By The Listed Company On The Investment Efficiency

In recent years,the capital management methods of listed companies have been enriched a lot.Financial products have attracted the attention of a large number of listed companies due to their advantages such as short term,low risk and stable profit.Entrusted financing can help listed companies to improve the efficiency of capital management,as well as the income of capital while ensuring its security.The entrusted financing means that the company entrusts its capital to banks,trusts,funds and other entities within the agreed period,and these entities collect management fees from the listed company or share the benefits of financial management.On December 21,2012,the China Securities Regulatory Commission(CSRC)issued the "Regulatory Guidelines for Listed Companies No.2--Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies",which allow the listed companies to manage the temporarily idle funds they raised.Since then,investment in financial products of the listed companies has been highly increased.Entrusted financing of listed companies leads to a heat discussion: whether the rapid growth of scale of entrusted financing is out of cash management motivation or speculative motive? Will the listed company keep investing in investment projects? Will the risk of entrusted financing spread to the whole capital market? Different companies may have different motivations,some companies buy wealth management products to reserve cash,and sell these products to invest in project when meet some investment opportunities in the future.In this situation,the entrusted financial management plays the role of the "Reservoir",which can help to ease the financing constraints,improve investment efficiency of companies.However,other listed companies may also treat the financial products as alternatives to investment just out of speculative motives.At this time,entrusted wealth management will crowd out the investment of listed companies,resulting in insufficient investment.In this paper,the investment efficiency is selected to examine the economic consequences as well as the motivation of listed companies who are engaged in entrusted financial management.In addition,this paper uses industry policy and the development degree of financial market to check whether the influence of entrusted financing on investment efficiency will change,and further discuss the influence of capital source and nature of property rights of companies on the relationship between entrusted financing and investment efficiency.This paper is aimed at enriching the research of entrusted financing behavior of listed companies.The conclusion of this paper shows that the greater the capital occupied by entrusted financing,the lower the investment efficiency will be.Listed companies are motivated to speculate through entrusted financing,but the negative impact on industrial investment efficiency will be alleviated with the support of industrial policies.In addition,when financial market environment is developed,the impact of the occupation of entrusted wealth management funds on the efficiency of investment will also be weakened.For state-owned enterprises,the effect of entrusted financial management on the investment efficiency is smaller than that of non-state-owned enterprises.Then,the negative impact of entrusted financing on investment efficiency of enterprises with low ownership concentration will be weakened.However,the higher the shareholding ratio of the management,the weaker the "Crowding Out" effect of entrusted financial management and the smaller the impact on investment efficiency.Finally,for those listed companies who use their own funds for financial management,the investment efficiency will be negatively affected to a lesser extent,while for companies that use raised funds,the relationship does not exist.