Research On The Relationship Between Government Subsidy, Inefficient Investment And Corporate Value

The private listed corporation play a important role in increasing employment、promoting economic development as an important part of the socialist market economy. The private listing corporation’s efficiency of investment directly relates to the increase of its value directly. The private listed corporation is still in a weak position in many aspects compared with the state-owned listed companies, facing such as trade barriers, single financing channel, financing system obstacle and so on,These defects of private listed corporation influence the increase of their own. value.So study government subsidies of the private listed corporation on the inefficiency of investment and company value has important an important theoretical and practical significance.With the transformation and upgrading of China’s economy,The development of China’s economy into the new normal, The development of our economy appeared the downward trend. This paper study the private listed corporation rational make use of government subsidies to enhance their own value based on the background of the new norm of economy,it provides a reasonable basis and suggestions for the development of the private listed corporation in the growth and perfection of the government subsidy policy. So under the new normal, The private listing corporation obtain government subsidies can achieve efficient allocation of resources to enhance their own value? The government subsidies mainly through excessive investment or insufficient investment to reduce the behavior of inefficient investment?In view of this, The sample is the private listed corporation of A-share form year 2010 to 2014, to explore the relationship between government subsidies and inefficient investment, government subsidies and corporate value and the path of mpaction. On the basis of a literature review and related theory conduction of government subsidies 、 inefficient investmen and corporate value, measuring the behavior of inefficient investment reference to the model of Richardson, Qingquan Xin’s investment efficiency on the private listed corporation, measure the value ofprivate listing corporation with Tobin Q, using the government subsidy as the independent variable and adding other control variables for empirical analysis and test.The regression analysis was performed using STATA14.0, The result of regression shows that the government subsidies increase the inefficient investment behavior of private listed corporation, and increased the inefficient of investment mainly through excessive investment behavior of private listed corporation; the government subsidies increased the value of the corporation directly, Government subsidies increase the excessive investment in private listed corporation and reduce insufficient investment behavior, therefore, government subsidies should increase support for private listed corporation of insufficient investment to promote the value.The private listed corporation should improve the investment efficiency of government funds to avoid furthering insufficient investment,in order to further enhance the value of the corporation.The empirical research results provide new ideas and perspectives of the government give subsidies support to the private listed corporation according to the types of different investment; and also provide a basis to improve the investment efficiency of government subsidies through establishing a rational relationship between government and enterprises. On the one hand, the private listed corporation of insufficient investment should make full use of government subsidies to reduce the inefficient investment behavior, should focused on the improvement of their own values, in order to achieve efficinency of government subsidies to enhance their own value;on the other hand, the private listed corporation as an important part of China’s economy of market, the government should have selective capital support of the insufficient investment of the private listed corporation to support efforts to increase the investment activities, adding new vitality to enhance the value of private listed corporation, to promote the development of national economy; The government subsidies can improve the value of insufficient investment in the private listed corporation generally,The excessive investment private listed corporation should further improve the efficiency of investment of government subsidies, in order to promote the effect of government subsidies on the value of the company.