Budgeting System,Inefficient Investment And Self-strengthening Mechanism

At present,there is serious budgetary slack in the corporate budgeting system,which reduces the effective adjustment of the budgetary system to investment efficiency.Inefficient investment generally exists,resulting in low resource allocation efficiency and affecting the sustainable development of the company.This paper aims to solve this problem and aims to make up for the inadequacies of the current budget system in constraining inefficient investments,provide empirical evidence of non-efficiency investment in the context of China's specific environment,and establish a self-reinforcing mechanism to provide research support for increasing the efficiency of investment for enterprises.Based on the existing researches,this paper adopts a combination of empirical research and normative research.First,Richardson's model is used to measure the inefficient investment of state-owned and state-controlled listed companies in China's manufacturing industry from 2011 to 2016;then this article examines the impact of factors such as national financial policies and budgetary slack on non-efficiency investment of enterprises;finally exploratory studies on the alleviation effect of self-reinforcing mechanisms on non-efficiency investment of enterprises.This article has obtained the following conclusions:(1)The study finds that China's manufacturing state-owned and state-controlled listed companies have inefficient investment behaviors.Affected by the relaxation of national financial policies and budgetary slack,the number of over-invested enterprises shows a clear inverted "U".(2)Budgetary slack will have an impact on overinvestment behavior of companies,and budgetary slackness will have a negative correlation with overinvestment behavior of companies.The higher the degree of budgetary slackness,the greater the possibility of overinvestment in companies;(3)Establishing a self-reinforcing mechanism for self-contained budgeting system can improve the existing budget system of enterprises in our country and have a positive effect on the suppression of non-efficiency investment by Chinese enterprises.