Environmental Uncertainty, Equity Incentives And Inefficient Investments

Investment behavior,as one of the three core contents of corporate financial management,occupies an important position in the business activities of an enterprise.The correct investment decision greatly enhances the market value of the enterprise,but at present,the problem of inefficient investment in enterprises is widespread due to the agency problems of owners and operators.Therefore,how to improve the investment efficiency of enterprises has become the focus of attention.At the same time,in the unpredictable global market economy,companies are facing increasing environmental uncertainty,and the agency contradictions between operators and others have become increasingly serious.To solve this difficult problem,equity incentives have emerged.By granting equity incentives to the operators,the enterprises will reach a common goal between the operators and the owners,and work together to maximize the value of the enterprise.Reduce inefficient investment issues in your business.Based on the above analysis,this article uses A-share listed companies from 2011 to 2018 as sample data.The environmental uncertainty is divided into corporate environmental uncertainty and macro environmental uncertainty.Two different types of environmental uncertainty and non-The relationship of efficiency investment.And on this basis,equity incentives are added to explore the effects of equity incentives on the two,and equity incentives are divided into two different types of incentive models,and their differences are discussed separately.Finally,based on the empirical results,the conclusions of this paper are drawn:(1)Both environmental uncertainties are positively related to the overinvestment and underinvestment of enterprises,that is,the two environmental uncertainties will aggravate the inefficient investment behavior of enterprises:(2)The implementation of equity incentives by enterprises helps curb inefficient investments under environmental uncertainty:(3)The research found that equity incentives implemented by enterprises are classified according to models.Compared with the stock option incentive model,the implementation of restrictive stock model by enterprises has a stronger inhibitory effect on the inefficient investment behavior of enterprises caused by the uncertainty of the two environments.Finally,through the research conclusions obtained in this paper,relevant countermeasures and suggestions are proposed for the inefficient investment problems commonly encountered by listed companies,including strengthening the ability of enterprises to adapt to environmental uncertainties and diversified operations.Through the research in this article,I hope to provide some help to improve the current situation of inefficient investment in Chinese enterprises.