| Investment is one of the core financial management activity in modern companies. It is not only closely related to survival and development of enterprises, but also affects allocation of society’s resources. Relevant studies suggest that there are none-efficient investment behaviors in some enterprises in China, which has a certain impact on the healthy development of the enterprises. Generally speaking, non-efficient investment includes overinvestment and underinvestment. Traditional investment behavior research focus on overinvestment, but some scholars held a point that there is more general underinvestment in our country comparing with overinvestment. Therefore, It seems important and imminent to pay more attention to underinvestment behavior. This paper explores the relationship between internal corporate governance and underinvestment behavior. It aims at exploring the influence factors of underinvestment behavior both from theoretical and empirical sides.After the preliminary studies and theoretical analysis,this paper chose the years of2010-2013about4796panel data of the A share listed companies of China as research sample, using the empirical research method to analyze how internal corporate influence on underinvestment behavior of the listed companies in China. This article draws the following conclusions:the largest shareholders will strengthen underinvestment behavior; equity balance has the same influence to underinvestment behavior as the largest shareholders; board meetings can reduce the underinvestment behavior; the higher the proportion of independent directors is, the less underinvestment behavior will be; company-paid consumption of manager plays a significant role in reducing underinvestment behavior; the manager annual salary is higher and more conducive to curb underinvestment behavior. According to the above conclusions, the paper’s last part puts forward some enlightenment and suggestions from following parts:improve the system circumstances; regulate the stock structure; strengthen the strategic decision function of directorate and improve the executive incentives. It’s helpful to improving the investment efficiency and promoting the healthy development of listed companies of China. |
