CEO Industry Professional Background And Corporate Investment Efficiency Research

In recent years,the state has proposed many policies to deepen supply-side reforms.On March 5,2019,Premier Li Keqiang proposed in the government work report of the State Council,"Through deepening the supply-side structural reforms to continuously release the vitality of the real economy." It can be seen that the supply-side structural reform policies provide new ideas for enterprises to seek economic growth The core of the policy is to increase total factor productivity,the purpose is to digest excess capacity,improve the efficiency of enterprise capital use and promote the upgrading and transformation of enterprises.Therefore,how to ensure investment efficiency in the operation of enterprises has become the focus of attention.Since the reform and opening up,China’s economy has been in a stage of rapid development for many years.While companies are investing in the country,they have begun to develop an international road.The investment strategy of enterprises has become a balance between domestic and foreign investment,and important business strategies have also been changed to promote enterprises.Development and scale expansion are the main factors.It can be seen that the differences in investment efficiency and influencing factors of enterprises have attracted much attention.Optimizing the investment structure has also become one of the main contents of expanding domestic demand and transforming the economic development mode.However,in recent years,the overall efficiency of corporate investment in the Chinese market has not been optimistic.Corporate investment efficiency is a major problem facing China today,mainly manifested by the high proportion of non-efficient investment among enterprises,the sub-optimization of resource allocation,and the inefficient use of social wealth.Fully,how to promote and improve the investment efficiency of enterprises is a major contradiction urgently needed to be resolved at the current stage of China’s economic development.In the development of China’s market economy,the effectiveness of investment management activities is of great significance to the development of modern enterprises.Improving the effectiveness of investment management activities is an important financial problem that modern enterprises need to solve,and reflects the important core competitiveness of enterprises.It is also of great significance to improve the efficiency of investment management in promoting the operation of modern enterprises.For important executives in an enterprise,their investment and financing decisions also play a vital role in the investment efficiency of the enterprise.The results of high-level echelon theory and related managerial studies show that managerial characteristics and special experiences can have an important impact on the investment activities and management efficiency of enterprises.As the senior executives of the company directly participate in the company ’s investment management activities,such as plan management and organization implementation,they have a greater impact on the efficiency of the company ’s investment management activities than ordinary employees.Significance.As the agency problem of enterprises and the problem of asymmetry of enterprise information are common,CEO as a key person in the investment management of modern enterprises,his experience in related fields makes him have a professional background in related industries.When he is a CEO in a similar industry,The relevant industry professional background experience has a very obvious impact on investment and financing decisions.Based on the analysis of "branding theory" and "high-level echelon theory",this article mainly discusses whether CEOs with professional backgrounds in the industry are more professional,and whether such "branding" with professional backgrounds in the industry will enhance the CEO’s cognition and ability to the industry.Whether it will reduce financing constraints,inhibit managers’ short-sighted behavior,and increase the utilization of resources through information and resource effects to promote the improvement of enterprise investment efficiency,will it have an important guiding role in the decision-making of enterprise investment strategies and development directions.The paper uses the A-share listed companies in Shanghai and Shenzhen as the initial samples.Based on the relevant data of 2690 samples of listed companies from 2008 to 2018,the Richardson model is used to measure the investment efficiency indicators.The theoretical analysis and The combination of empirical tests explores the relationship between the CEO ’s professional background and investment efficiency,overinvestment,and underinvestment.The empirical results show that:(1)The professional background of the CEO industry can promote the investment efficiency of the enterprise;the professional background of the CEO industry can restrain the inefficient investment behavior of the company’s excessive investment;the professional background of the CEO industry can alleviate the inefficient investment behavior of the enterprise’s underinvestment.(2)Under different property rights,the professional background of CEOs in private enterprises can significantly improve the investment efficiency of enterprises;CEOs with professional backgrounds in private enterprises have a more significant mitigating effect on the underinvestment of enterprises.(3)Under different marketization levels,the professional background of CEOs in regions with a high marketization level has a lower impact on corporate investment efficiency than in regions with low marketization levels;CEOs with professional backgrounds in regions with high marketization levels alleviate companies The effect of underinvestment is more significant;(4)Among different growth industries,the professional background of the CEO in mature industries has the most significant impact on corporate investment efficiency,and the professional background of the CEO in mature industries has a significant impact on corporate inefficient investment.The inhibitory effect is obvious.Finally,the results are obtained through empirical research and analysis,and relevant policy suggestions are proposed for how companies can improve their investment efficiency and improve non-efficient investment behavior.