An Empirical Study On The Sme Board Listed Companies’ Investment Efficiency

Since the opening of China’s small and medium-sized(SME) board in May2004, with the increasing number of companies listed on the SME board, scholarsbegan studying on these companies. Currently, many countries are facing theproblem of low corporations investment efficiency, home scholars generally thinkthat the Chinese Listed Companies’ investment efficiency is not high, there is theproblem of inefficient investment. Scholars have studied listed companies or largeenterprises in Shanghai and Shenzhen, while seldom do research on small andmedium-sized enterprises. With there were differences in enterprise scale、financing behavior and ownership between SME enterprises and large enterprises,whether there are inefficient investment behavior in SME enterprises? Is itover-investment or under-investment? What are the factors that affect theinefficient investment behavior? And how to enhance the efficiency of investment?This research article will focus on these questions, taking SME board listedcompanies as the research target, we study the SME board listed companyinvestment efficiency problem from a financial point of view and the micro level.The main research contents and conclusions were as follows:(1)Analyze theinvestment and financing situation of SME board listed companies deeply. From thefinancing perspective, the investment of the SME board listed companies takes on atrend of increasing, while the level of annual investment expense differs. From thefinancial perspective, the financing of the SME board listed companies basedmainly on external financing, among them, debt financing is supposed to be slightlyhigher than the equity financing;(2)Take2007-2010as research period,we studythe SME board listed company investment efficiency problem, the results show thatthe under-investment is prevailing in SME board listed companies;(3)This articleanalyses the affecting factors of investment efficiency from a financial point ofview and the micro level, the results show that debt financing alleviate theunder-investment behavior; To some extent, commercial credit inhibitedunder-investment occurrence, while the inhibition of bank lending is not big;Short-term loans can effectively alleviate the under-investment behavior, but thealleviation function of long-term loans is not obvious; The first shareholder’sshareholding proportion is higher in SME board listed companies, and will cause the control of large shareholders, thus it is easily to lead to under-investmentbehavior，the proportion of managerial ownership can effectively alleviate theunder-investment behavior, the equity restriction ratio is not effectively inhibit theunder-investment behavior. Based on the above conclusions, this article proposesome policy suggestions, such as, the development of bond market、improve theSME business credit liabilities market、reasonable to arrange a bank loan period、strengthen the responsibility of shareholder and give full play to the equityrestriction ratio.