Research On The Impact Of Performance Commitment On Corporate Investment Efficiency

In recent years,more and more enterprises have joined in the tide of merger and acquisition,hoping to quickly occupy the market through merger and reorganization,expand the market share,make the enterprise bigger and stronger.Through mergers and acquisitions,enterprises can realize the centralized and optimized allocation of resources,promote the integration of resources among different industries,thus achieving rapid growth and effectively avoiding the risk of barriers caused by fighting alone.Its essence is that the merger and acquisition parties exchange on the basis of equality and voluntary with a certain price,so that one party has the control over the other party,which is also an important way of capital operation and management,has far-reaching influence on our market competition system.The origin of Chinese enterprise merger and acquisition is less than that of western developed countries,but the development momentum is very strong,in the quantity and amount of the world,among the first.After the completion of the merger and acquisition,enterprises can enhance their core competence through scientific and reasonable allocation of the overall resources of both parties in a timely manner,which is conducive to promoting the improvement of investment efficiency.In May 2008,China Securities Regulatory Commission issued the Measures for the Management of Material Assets Reorganization of Listed Companies,and since then,performance commitment has been introduced into mergers and acquisitions transactions in legal form.In the current unpredictable and competitive market environment,performance commitment can play a certain role in alleviating the information asymmetry between the merger parties and investors,and at the same time reduce the uncertainty risk caused by improper valuation.In addition,good internal control can effectively contain the management agency costs.However,in actual life,the concrete effect of performance commitment clause needs to be further studied.The key of this paper is to discuss the impact of performance commitment signed by the two parties on the investment efficiency of listed companies.Based on the review and analysis of relevant literature,this paper studies the relationship between performance commitment and investment efficiency.Then,using the M&A events of Shanghai and Shenzhen A-share listed companies from 2009 to 2021 as samples,the paper calculates the investment efficiency with the help of the Richardson model,and empirically analyzes the relationship between the two.The mediating effect of information asymmetry and the moderating effect of internal control on the relationship between the two are further studied.In addition,robustness test and further analysis are carried out in this paper.The conclusions of this paper are as follows: First,performance commitment has a significant positive correlation with enterprise investment efficiency,that is,signing performance commitment will improve enterprise investment efficiency.By transmitting positive signals of good development to the outside world,enterprises can attract the majority of investors and give confidence to existing and potential investors,so that enterprises can get more capital injection and reasonably choose high-quality investment projects.Second,information asymmetry plays an intermediary role in the effect path of performance commitment on investment efficiency.Performance commitment can effectively reduce the information asymmetry between investors and the merger and acquisition parties,so as to alleviate the financing constraints faced by enterprises and improve the investment efficiency of enterprises.Thirdly,internal control,as a moderating variable,can promote the positive impact of performance commitment on enterprise investment efficiency.High-quality internal control means that the management will be strictly constrained and supervised in the use of funds,effectively curbing the improper motivation of the management,the lower the agency cost,and reduce the inefficient investment.The innovation points of this paper are as follows: First,in the study of the relationship between performance commitment and enterprise investment efficiency,this paper introduces information asymmetry as an intermediary variable,and analyzes its role in the relationship between the two.Secondly,we introduce internal control as a moderating variable to analyze its influence on performance commitment and corporate investment efficiency,which provides a new idea for improving corporate investment efficiency from the perspective of strengthening corporate internal governance.Thirdly,the research on the factors affecting the efficiency of enterprise investment is expanded.Previous studies on factors affecting enterprise investment efficiency mainly focus on corporate governance,capital structure,market conditions and other aspects.This paper links performance commitment with enterprise investment efficiency,which enriches relevant studies.