Research On Market Competition And Investment Efficiency Of Manufacturing Enterprises

Investment is one of the core contents of modern enterprise management.With the increasingly fierce competition in the market,different enterprises will make different investment decisions in the face of market competition.State-owned enterprises have more free cash flow,and it is easy to produce the phenomenon of excessive investment.Due to the influence of financing constraints,non-state-owned enterprises are prone to underinvestment.The level of investment efficiency plays an important role in the rational integration of resources and the creation of enterprise value,and also affects the rapid development of enterprises.In recent years,there are many researches on investment efficiency at home and abroad,but there are still gaps in the research on the influence of market competition degree on enterprise investment efficiency based on China’s special market economy background,Manufacturing enterprises are large in scale and rich in types.The study of the relationship between them is the starting point of this paper.From the normative research,this paper theoretically explores the influence mechanism of market competition on the efficiency of enterprise investment,and tries to put forward the research hypothesis on the basis of the theory of agency theory,the theory of information asymmetry and the relationship of investment efficiency.According to the empirical research hypothesis,the Richardson(2006)expected investment model is first divided into two groups of overinvestment and insufficient investment,which lays the foundation for further research.Secondly,it studies the market competition degree and investment efficiency through single variable analysis and regression analysis,and based on production.The right nature,the investment inefficiency behavior,the manufacturing industry category are grouped to the whole sample.Finally,the empirical research results are verified by further test and analysis.This paper proves that:(1)There is a positive correlation between the degree of market competition and the enterprise’s investment efficiency.The more competitive the market,the higher the investment efficiency;(2)Under different property rights,the influence of the degree of market competition on the enterprise’s investment efficiencyis different.The state-owned enterprise invest excessively,but the investment efficiency is relatively low;(3)The degree of market competition has a great influence on the investment activities of the non-state-owned enterprises;(4)Overinvestment and underinvestment are two different kinds of inefficient investment behaviors,and there are obvious differences in different enterprises based on the difference of property right and industry.