Top Management Team Experience,Price Informativeness And Investment Efficiency Of Enterprise

In recent years,it has been demonstrated that the relationship between investment and economic growth has suffered a degree of weakening trend.The impact of investment on stimulating economic growth declines year by year because of the low efficiency of our country's investment.While enterprise is the basic unit of national economy,enterprise growth is basis of economic stability and sustainable development.As the business investment expenditure occupies a large portion of our country's total investment expenditure,improving the investment efficiency of enterprise will be an important channel to improve our country's investment efficiency.Researches on how to improve the efficiency of enterprise's investment has been taken a lot by scholars so far,however lacks in the study of the relationship between top management team experience and corporate investment efficiency.As we know,as an important strategic resource and core competitiveness of a company,the top management team will have a significant impact on the company's investment decision making.Due to the complexity of the internal and external environment,managers often make decisions based on their own cognitive structure and values.That is,the experience of top management team will affect their members' perception and explanation of relevant information,and thus affect the investment efficiency of enterprise.Stock market is an important center of the economic information.Through large and frequent transactions,stock price may include business information all over the world,such as operating conditions and development prospects of various industries and departments.When the market has information efficiency,that is,stock price can fully reflect the company's firm-specific information,on one hand,as an important source of information,highly experienced top management team can better interpret the private information in the stock price and get information feedback from it;On the other hand,external investors can improve the ability to identify company projects,and strengthen the supervision of the top management team by processing and analyzing the stock price information,.Under external pressure,the top management team will be more motivated to use their rich experience,including professional knowledge and relationship resources,to improve corporate investment decisions.Therefore,combining the price informativeness,this thesis employs the non-financial listed companies during 2008-2016 as the research object,through normative and empirical research methods to investigate the relationship between experience of top management team experience and corporate investment efficiency.Even further,this thesis examines the distinction of the relationship between State Owned Enterprises and Non-State Owned Enterprises,and find a significantly different correlation in the above two classification.Its conclusion can not only enrich the theory of the relationship between top management team experience and corporate investment efficiency,but also be able to provide practical guidance for companies on how to improve their own investment efficiency through the stock market and how to strengthen the building of top management teams.Considering the theme of study,this thesis is divided into six parts:The first part is the introduction.Firstly,this part introduce the research background of this paper,and then it explains the purpose and significance of this study.Next,the paper put forward the research ideas and frameworks.Finally,this part introduces the research method and the structure.The second part is literature review.Firstly,this part reviews the investment efficiency research.Then this part reviews the relationship between price informativeness and investment efficiency.Next,this part reviews the the relationship between top management team experience and investment efficiency.Finally,this part summarizes the research results of native and abroad.The third part is the system background,theoretical analysis and hypothesis.Firstly,this part explains how top management team experience can influence corporate investment efficiency,and how price informativeness will influence the relationship between price informativeness and corporate investment efficiency.The fourth part is the research design.Firstly this part illustrates the data sources and sample selection in this paper.Next,this part explains the meaning and measure of variables,and then builds the empirical model in this paper.The fifth part is the empirical result.Based on the fourth part,this part is about top management team experienceand corporate investment efficiency for multiple regression analysis,and based on the results of multiple regression,join the price informativeness as the adjustment variables.The sixth part is the conclusion and policy recommendations.In this part,conclusions are made according to the results of regressions and relative policy advices are put forward on the basis of research conclusions.Besides,the innovation points and shortcoming of the study are also pointed at last.This study finds that the experience of the top management team can improve the investment efficiency of enterprises to a certain extent,and the higher price informativeness,the more obvious this positive correlation is.After taking into account the differences in the property rights of enterprises,it is found that the price informativeness does not improve the relationship in state-owned enterprises.The main reason is that the management of state-owned enterprises will consider more of the government's wishes and social needs rather than simply maximizing the value of the company.