Relationship Transaction,Market Process And Inefficient Investment

Investment activity is the driving force to enhance the value of the company,and it's also one of the three core aspects in the company's financial management.The investment problem is the focus of attention of the industry.The problem of inefficiency investment generally exists in the listed companies of our country,which greatly affects the efficiency of capital utilization and the effective and healthy development of the capital market.At present,there are many factors that affect the efficiency of investment.Most scholars study from financing constraints,equity incentive,internal control and other aspects,but rarely research from suppliers/customers important stakeholders.The rapid development of modern economy makes the relationship between the enterprise and the suppliers/customers more and more closely,the dependence of the two sides has been strengthened,and the suppliers/customers have an effect on the company's business decisions by the "specific assets".On the one hand,relationship transaction through the establishment of a trust system to reduce the transaction costs of both sides and improve the competitive advantage;on the other hand,it may also bring negative effects like opportunism,locking,moral risk,including the impact on the investment behavior of enterprises.Based on the specific market environment in our country,we choose the suppliers/customers concentration perspective to study the impact of the relationship transaction on the inefficient investment by using the samples from 2008 to 2014 A-share listed manufacturing companies in China.On this basis,the factors of the market process are added to further analyze the impact of market process and the interaction of the relationship on the investment efficiency of the company.The results show that:(1)The higher the proportion of suppliers or customer relationship transactions,the lower the investment efficiency,which will increase the degree of overinvestment or underinvestment.(2)The acceleration of the market process can inhibit the inefficient investment caused by the relationship transaction behavior,and the role on inefficient investment caused by suppliers transaction is more significant.This paper summarizes the empirical evidence of the influencing factors of investment efficiency in China from a new perspective on suppliers/customers research conclusion on investment efficiency.