Research On The Relationship Between Ownership Structure And Inefficient Investments Of Listed Companies On Gem

As one of the three major financial management activities, Investment activities affectthe company’s value and development prospects directly. Equity structure as the basis ofcorporate governance, it affect the company’s investment decision-making behavior, and thusaffect the value of the company, so unreasonable ownership structure leads to inefficientinvestment behavior of the company. At present our country the GEM listed companiesgenerally have problem with the efficiency of investment, which not only restricts thecompany’s own development, but also indirectly affect the efficiency of capital marketallocation of resources. How to optimize the GEM listed company ownership structure,reduce the efficiency of investment, to become one of the research topic. However, at present,the research of listed company ownership structure and the efficiency of investment mainlyfocus on Shanghai and Shenzhen main board listed companies, very little research on the gemlisted companies. At the same time as the gem listed company ownership structure has itsspecial points, existing research conclusion can’t provide a powerful reference for GEM listedcompanies. So the Gem listed company ownership structure and the efficiency of investmentis of great significance.Thesis adopt the method of combining normative research and empirical research on therelationship between ownership structure and the efficiency of investment of the GEM listedcompanies. First, this paper introduces the research background and significance and researchstatus at home and abroad; And then it defines the efficiency of the growth enterprise market,equity structure and the investment concept, this paper expounds some theoretical basis aboutthe ownership structure and the efficiency of investment research. Secondly from theownership concentration, equity balance and equity properties analyzes the GEM listedcompany ownership structure characteristic, and from the level of investment and investmentspending describes the investment status quo of the GEM listed companies. Again, theempirical study on the GEM listed company ownership structure and the efficiency ofinvestment, select the GEM listed company related data in2011-2013as the research sample.By drawing from Richardson residual error model, build the measurement model ofinvestment efficiency and the regression model of ownership structure and the efficiency ofinvestment relationship, and it carries on the descriptive statistics, correlation test and regression analysis. The empirical research shows that: The gem listed companies’ largestshareholder and management stake is too high will aggravate degree of underinvestmentcompany, high equity balance degree and the increase of institutional investors holding areconducive to improve the efficiency of corporate investment, increase the proportion oftradable shares will lead to excessive investment, reducing underinvestment. Finally,according to the empirical research conclusion provides some help GEM listed companiesimprove the investment efficiency of countermeasures. Such as reasonable distribution ofequity, give play to the role of equity checks and balances, increase the proportion ofinstitutional investors holding, establish an effective manager incentive mechanism, improveinformation disclosure system, etc.