Ultimate Controller's Ownership Characteristics,Process Of Marketization And Non-efficient Investment

Investment is closely related not only to the development of enterprises but also to the social resource allocation.Thus,non-efficient investment has been widely concerned.Under pyramid control structure,the ultimate controller plays an important role on the efficiency of investment.So,this paper transfers to the ultimate controller and studies on the impacts of ultimate controller's ownership characteristics on the efficiency of investment.And,this paper takes process of marketization into account to the study.It is of practical significance to improve the efficiency of investment and optimize social resource allocation.This paper summarizes the relevant literature discussing the ultimate controller's ownership characteristics,process of marketization and non-efficient investment.Based on the principal-agent theory,information asymmetries theory and control right theory,this paper analyzes the interaction mechanism among ultimate controller's ownership characteristics,process of marketization and non-efficient investment.And,this paper uses China's A-share listed company's research samples over the period of2014-2017.Besides,this paper sets new models to testify the hypotheses.Through empirical research,the conclusions can be drawn as following.First,the nature of ultimate shareholder effects the non-efficient investment.Compared with companies controlled by governments,companies controlled by private property are more likely to under-investment.Besides,compared with companies controlled by central governments,the over-investment problem of companies controlled by local governments is more serious.Second,the separation of two rights and non-efficient investment have a positive correlation.Third,a higher degree of marketization helps alleviate over-investment caused by the nature of the ultimate controller and the insufficient investment caused by the separation of the controlling right andthe cash flow rights.The innovative points of this paper mainly reflect in the following two aspects: First,this paper transfers to the ultimate controller and provides a new perspective for the research on the non-efficient investment.Second,this paper takes process of marketization as external environment into account,offering a unique empirical evidence of the impacts of ultimate controller's ownership characteristics on the non-efficient.