Empirical Study On The Influence Of Fixed Asset Investment On Enterprise Performance

As China’s economy into the "new normal",the central government through the implementation of reform of the supply side,instead of a series of measures such as increasing downward pressure to cope with the economy,for the real economy enterprises to reduce production costs,increase economic efficiency,and investment,as one of the troika,at the same time is an important power of enterprise development and continuously create,plays a vital role.In 2015,the State Council issued the notice on adjusting and improving the capital system of fixed assets investment projects,aimed at around optimize investment structure,reasonable threshold,lower investment on fixed assets project is beneficial to our country enterprise to improve investment ability,effectively increase the favourable investment,for public goods production,upgrading of service quality and other aspects such as the direction of the development of short board can be better,at the same time the enterprise existence " to take off the real to virtual " tendency also can get very good inhibition.As an important part of enterprise investment,fixed asset investment has a direct impact on production efficiency,enterprise performance,enterprise value and other aspects of the enterprise.However,it is crucial for managers how to adjust internal business decisions according to the changes of economic environment and policies.Based on construction enterprises from 2005 to 2019 the annual data of listed companies as samples,first by static panel data model for each variable,multiple regression analysis to explore the effect of fixed asset investment’s influence on enterprise performance,on the basis of considering the influence of enterprise performance lag effect might exist,building dynamic panel data model that USES the system GMM method,the performance will be lagging behind into a unified research framework,combined with other explanatory variables and control variables to delve into fixed asset investment’s influence on enterprise performance.The results show that:(1)The stock and increment of fixed asset investment of listed construction companies in China have significant and different effects on enterprise performance.The stock of fixed asset investment shows a negative inhibiting effect,while the increment of fixed asset investment shows a positive promoting effect.(2)under the different ownership structure,the impact on enterprise performance exist differences of investment in fixed assets,the equity checks and balances in the enterprise the influence degree of the shown to significantly greater than the equity concentration and diffuse ownership enterprises,shows that under the condition of ownership balance degree of enterprise fixed assets investment on enterprise performance relationship is higher,things will make the enterprise internal checks and balances of shareholders in the face of the market environment and investment opportunities to reduce the possibility of blind investment,increase investment efficiency;(3)The empirical results verify that the influence of non-state-owned enterprises’ fixed asset investment on enterprise performance is stronger than that of the state-owned enterprises,which indicates that non-state-owned enterprises need to adjust their internal investment structure and asset ratio continuously to adapt to the changes of economic environment brought about by market changes.For empirical research and theoretical analysis results,this paper puts forward some policy Suggestions from the perspective of micro and macro perspective,the micro perspectives on:(1)Reasonably allocate the stock of fixed assets,improve the quality of fixed assets,encourage enterprises to combine their current capacity structure and distribution ratio,and avoid the increase of ineffective investment and non-performing assets;(2)Optimize the structure of fixed assets,increase the increment of fixed assets appropriately,and excavate the capacity of fixed assets;(3)Reasonably allocate the shareholding ratio to promote shareholder diversification,and use value bundling to generate interest convergence between managers and major shareholders,so as to reduce interest conflicts.From a macro perspective;(1)We will deepen the reform of state-owned enterprises,improve SOEs’ independent profitability and governance capacity,and guide and enhance non-SOEs’ ability to withstand risks and enhance their market competitiveness;(2)Improve the evaluation mechanism of government fixed asset investment and improve the decision-making level of the government;(3)With the market as the main part and the government as the auxiliary part,the original administrative intervention of the government is transformed into auxiliary supervision,so as to guide the healthy and stable development of enterprise production and national economy under the market economy system.Figure[1] table[21] reference[60]...