Government Control, Goverance Environment And Over-Investment Behavior Research

Over-investment behavior of enterprise value and sustainable development will bring great impact. The national conditions of China’s current market economy by the dual role of the market and the political, and the level of the market process, government intervention level, the rule of law, the level of regional development of extreme imbalance. So in this article from the nature of Ultimate Ownership, explore the actual control of human government control will affect the over-investment behavior, and the introduction of over-investment theory system governance environment, the macroeconomic factors, the analysis of whether the governance environment improvement can effectively curb excessive investment behavior. Finally, verify the ultimate property rights whether governance environment to curb excessive investment behavior to produce differences rich overinvestment theoretical system has a very important practical and theoretical significance.2004-2010A-share listed companies as samples, excluding a sample of some of the missing data, and finally the2205sample reserved. Expected investment model to measure the level of over-investment, and build the test model as a basis for empirical research, through empirical results, we get the following conclusions:(1)Expected investment model to measure the level of over-investment, and build the test model as a basis for empirical research, through empirical results, we get the following conclusions.(2)Corresponding to by the the ultimate control the right to by the that the Government hierarchy with the excessive investment was a negative correlation.(3)the phenomenon of over-investment will be effectively suppressed.(4) Non-government-controlled listed company governance environment index higher the more significant inhibitory effect on excessive investment.Theoretical analysis of the empirical results, the paper proposes the following recommendations:(1)Separate government from enterprises, accelerate market-oriented reforms to improve the status quo concentrated ownership of state-owned enterprises, improve the official promotion evaluation mechanism in order to reduce government intervention in investment strategy.(2)Improving governance environment (market-oriented process, govern-ment intervention, the rule of law level) in order to curb excessive investment behavior ater researchers.