| The convocation of the 19th National Congress announced that the major social contradictions in our country have changed.In the past,the fast-growing economic model has no longer adapted to the needs of the times.Instead,it seeks to stabilize high-quality development.In this context,investment efficiency has become the current research hotspot.At present,with the advancement of state-owned enterprise reforms and the development and growth of private enterprises,the power of management is expanding day by day,and management will inefficiently invest in self-interest motives.In recent years,scholars have gradually paid attention to the influence of management power on investment efficiency.However,for Chinese enterprises in the period of economic transition,it is not only necessary to consider the impact of management power on investment efficiency from the perspective of the company,and the differences in the external institutional environment also have an impact on the investment decisions of the company.Therefore,this paper studies the influence of internal management power on investment efficiency in combination with the external institutional environment that firms face,thus providing a new way for improving corporate investment efficiency.This article first reviews the literature on domestic and foreign management power,investment efficiency,and institutional environment.Based on principal-agent theory,information asymmetry theory,behavioral finance theory,and institutional change theory,this paper analyzes the relationship between management power and investment efficiency.Afterwards,the institutional environment was used as a moderating variable to examine its regulatory role on the relationship between management power and investment efficiency.Empirical studies were conducted using the data of manufacturing A-share listed companies during 2012-2016.The study found that:First,China’s manufacturing listed companies generally suffer from low investment efficiency.The scope of investment is less and investment is excessive.Second,there is a significant positive correlation between management power and corporate non-efficiency investment.That is,the greater the management power,the lower the corporate investment efficiency.Third,different institutional environments have different effects on the relationship between management power and investment efficiency.The higher the level of marketization,the higher the level of legalization,and the lower the level of government intervention,the more inefficiency the investment can be caused by management power,and improve the efficiency of corporate investment.Finally,according to the empirical results,on the promotion of corporate investment efficiency,relevant recommendations are put forward from the internal governance mechanism level and the external governance mechanism. |
