Research On The Effect Of Executive Tenure On The Efficiency Of OFDI Corporate Investment

The goal of enterprise management is to maximize the value,and the most important way to achieve the value maximization is to carry out investment activities,and whether the value can be created depends on the efficiency of enterprise investment.The level of investment efficiency affects the lifeblood of the company.From resource allocation to long-term development,it is closely related to investment efficiency.Investment decision-making is the initial starting point of business process in most of the time,and senior managers,as the most core resources of enterprises,hold the management right of enterprises,are the important persons who master the decision-making,their decision-making is related to whether enterprises can emerge in the fierce market competition,and whether they can develop stably in the long run.In many dimensions of executive power,the importance of executive tenure can be seen,which has a significant impact on the development of enterprises,and deserves the attention of enterprises and scholars at home and abroad.Among the influencing factors of senior executives,the tenure of senior executives plays an increasingly important role.This is because,with the increasing market competition,the problem of principal-agent relationship is becoming increasingly prominent,and the frequency of executive turnover is also accelerating,which has become obvious in enterprises' foreign investment.For corporate governance,a proper tenure of senior executives will enable them to devote themselves to learning advanced management knowledge,enrich their own capabilities and horizons,and tend to open their minds to innovation.However,when the term of office is extended,it will form its own fixed management habits,tired of management innovation,and in order to avoid risks,it will choose to be conservative.Therefore,the impact of senior executives' tenure on the efficiency of corporate investment has gradually aroused the discussion and research of scholars at home and abroad,which is of great significance in the field of corporate governance.However,there are few relevant researches on the above proposition in China's OFDI enterprises,and the relevant empirical research is even less.In view of the current stage of China's Empirical Research on the investment efficiency of the characteristics of executive power,there are few case studies that are detailed to the term of senior management.Therefore,the research method of case and regression analysis isadopted in this study.A listed company of OFDI in China,the leading equipment supplier in China's beverage packaging industry,Guangzhou Da Yi Long packaging machinery Co.,Ltd.,is selected for the case study.Using data from 2004 to 2018,this study analyzes the relationship between the tenure of senior executives and the investment efficiency of enterprises.This study follows the principle of combination of qualitative and quantitative analysis.In the case study,investment level,capital structure and corporate performance are three aspects to analyze the investment efficiency of the selected enterprises from different financial indicators.In the empirical study,this study takes more than 100 listed manufacturing companies in China from 2001 to 2015 as samples,and makes overseas investment through regression analysis Under the background,it verifies the relationship between executive tenure and corporate investment efficiency.Finally,according to the research results,this paper puts forward some suggestions to improve the investment efficiency of Chinese overseas investment enterprises,in order to provide inspiration and reference for Chinese manufacturing OFDI enterprises to improve the investment efficiency by optimizing corporate governance.