Managerial Competence,Inefficient Investment And Firm Performance

As the main decision-maker of an enterprise,manager is an important intangible asset of an enterprise.In the fiercely competitive market,if enterprises want to win a place and achieve good performance,the characteristic of managerial competence is a very important link.In modern enterprises,as the actual executor of business activities,senior managers control the allocation of resources and decision-making power of enterprises,and have an impact on the strategic principles,investment activities and economic plans of enterprises.And the efficiency of investment activities determines whether the enterprise can develop continuously and steadily,and whether it can achieve good corporate performance.Due to the imperfect development of the domestic market,information asymmetry and the pursuit of self-interest by senior managers,it is questionable whether the investment projects implemented by managers can really bring benefits to enterprises.This paper makes an in-depth study on the current situation,the relationship between managerial competence and corporate performance,and the intermediary effect of inefficient investment between them.The purpose is to analyze whether managers with high competence will make correct investment decisions for the future development of enterprises,so as to improve investment efficiency and make enterprises achieve better performance.Based on the data of non-financial A-share listed companies from 2013 to 2017,925 enterprises and 4625 samples were selected as observation values.Based on the high-level echelon theory,principal-agent theory and information asymmetry theory,this paper studies the relationship among Managerial competence,inefficient investment and corporate performance,and the intermediary effect of inefficient investment in the correlation between managerial competence and corporate performance.The inefficient investment is divided into insufficient investment and excessive investment,through empirical research and literature research,the multiple regression model is constructed and analyzed,and the regression test and Bootstrap intermediary effect test are carried out.In theory,by using inefficient investment as an intermediary variable to study the relationship between managerial competence and corporate performance,it not only supplements the relevant research on managerial characteristics,but also provides a research path of managerial competence-inefficient investment-corporate performance,and broadens the research ideas.In terms of indicators,this paper not only quantifiesmanagerial competence from the overall level of the enterprise by industry and year by the Dea-Tobit two-stage model,but also reduces seven indicators from four aspects of profitability,asset quality,debt risk and business growth into one indicator by principal component analysis to reflect enterprise performance comprehensively,avoiding subjectivity and lack of information caused by a single indicator.The empirical results show that after controlling the relevant variables,the improvement of managerial competence can alleviate inefficient investment behavior,which is conducive to the improvement of enterprise performance.Overinvestment and underinvestment play a significant intermediary role.Based on the conclusions,this paper puts forward some suggestions on how to improve the performance of listed companies.Enterprises can improve the employing mechanism of enterprise managers,select high-quality talents;improve the investment supervision mechanism of managers,and supervise from both internal and external aspects;improve the incentive mechanism of managers,and give appropriate equity or salary incentives to improve the performance of enterprises by using managers' ability to improve investment efficiency.Finally,according to the shortcomings and limitations encountered in the study,the paper puts forward the future research directions.