Managerial Competence,Managerial Power And Inefficient Investment

Since the reform and opening up,China's investment scale has continued to grow at a high speed.With the rapid development of the economy,the structural problems in different industries begin to emerge,and listed companies generally face the problem of overinvestment or insufficient investment.Investment decisions of enterprises are affected by many factors,which are mainly divided into two types,namely principal-agent and information asymmetry.The listed company,the management is in the self-interest will choose benefit maximization goal deviate from the company's investment decisions,if the enterprise internal governance structure to the lack of effective constraints on management and supervision and management of power expansion,easily lead to inefficient investment.At the same time,from the perspective of the characteristics of the management,the management has different abilities,and has different opinions on the effectiveness of information acquisition,control level and strategic preference of enterprise operation and management.Strong ability of management can effectively alleviate the financing constraints caused by asymmetric information,and achieve good performance through its management ability and obtain ideal pay,opportunism motivation is weak,help to avoid the investment efficiency.The influence of managerial competence and managerial power on the investment efficiency of enterprises is different,and the interaction effect should be paid attention to.Under the above background,this thesis choose 2011-2016 A-share listed company public data as the research sample,and theoretically analyzed the management ability,management power and the efficiency of irrvestment and the relationship between the empirical test.This thesis makes the following conclusion:(1)the management ability can significantly inhibit the efficiency of investment.The more competent the manager,the more able he is to use his own advantages to obtain the private information needed for investment decision-making,and avoid excessive investment caused by blind conformity.At the same time,it can effectively integrate the internal and external information,break the external financing constraints,and effectively alleviate the insufficient investment.(2)executives are more inclined to overinvest in the case of the expansion of management power due to the self-interest motive,that is,the management power will promote the occurrence of overinvestment and lead to inefficient investment.However,in the case of insufficient investment,the management is more inclined to make radical investment decisions,which can reduce the insufficient investment to some extent.(3)the interactive effect of managerial competence and managerial power will lead to inefficient investment.The ability of management cannot effectively restrain the inefficient investment behavior caused by the power of management.Management ability improvement of the efficiency of investment,on the other hand,inhibition of power will be affected by the management,and the effect was only significant in the listed companies in the presence of excessive investment.In the case of lack of investment,the interaction effect,there is no significant impact on investment efficiency.Based on the conclusion of the study,this thesis puts forward the following suggestions:strengthen the construction of senior management team,improve the performance evaluation system,and give full play to the survival of the best and the worst in the market competition of professional managers.Improve the internal governance mechanism of the company,optimize the internal governance structure,reasonably allocate the power of the management,and strengthen the internal supervision of the management.Gradually reduce the government intervention,so that the market mechanism plays a major role,while following up the external supervision on the management of listed companies.The innovation of this thesis is as follows:first,the latest comprehensive method to measure the management capability is DEA-Tobit two-stage regression method to quantify the management capability.On this basis,the influence of management ability on non-efficiency investment was tested,and it was found that the improvement of ability can significantly inhibit the non-efficiency investment.Secondly,at present,the research on the influencing factors of inefficient investment is mainly focused on external or enterprise factors,and less on the management level.In this paper,from two aspects,combined with the speciality of managers and corporate governance structure,management ability and their influence on the efficiency of investment,management power and the influence of both the interaction effect on the efficiency of investment,the study found that the management power and ability to interact effect will cause the investment efficiency.