Research On Managerial Power,Product Market Competition And Investment Efficiency

As one of the three important financial activities,the efficiency of investment activities affects the survival and development of enterprises.With the development of economy and society,China's economic development has gone through a high-speed development stage,is transitioning to high-quality development.As an important player in the market economy,the efficiency of enterprises is very important to achieve high-quality economic development.The separation of ownership and control of modern enterprise system makes the management control the distribution of economic resources of enterprises.Therefore,the behavior of management directly affects the investment efficiency of enterprises.In addition,the managerial power has also been strengthened along with market-oriented reforms,and how intensified managerial power will affect the investment efficiency of enterprises requires in-depth research and analysis.At the same time,with the continuous deepening of the marketization process,the resource allocation function that the market can play becomes increasingly important.The existing research shows that product market competition,as an external governance mechanism,can play an active governance role.Enterprises are not an isolated organization,it needs to interact effectively with the external environment to achieve its objectives,and how the market competition environment it faces will affect managerial investment behavior is worthy of further study and analysis.Therefore,this paper mainly studies how the managerial power and external product market competition affect the investment efficiency of the enterprise.The article sorts out the literature and theories about managerial power,product market competition and investment efficiency.Based on this,it conducts theoretical analysis and puts forward relevant assumptions,and conducts empirical analysis by collecting relevant data of Chinese listed companies from 2013 to 2018.The empirical research results verify the hypothesis proposed in the article and draw the following conclusions:(1)The formal power of management is significantly negatively correlated with the investment efficiency of the company.(2)The informal power of management is positively related to the investment efficiency of the company.(3)Product market competition is significantly and positively related to the investment efficiency of enterprises.(4)Product market competition can weaken the negative correlation between the formal power of management and investment efficiency.(5)Product market competition enhances the positive correlation between the informal power of management and investment efficiency.Based on the above-mentioned research conclusions,the article puts forward corresponding policy suggestions on how to improve the investment efficiency of enterprises:(1)Establish a suitable board of directors and shareholding structure to avoid the reduction of investment efficiency caused by the formal power of the management.(2)Pay attention to the development of informal power of management and consolidate the promotion of informal power to the investment efficiency of enterprises.(3)Reduce government intervention and actively promote the governance effect of product market competition.(4)Improve relevant laws and regulations to ensure the governance effect of product market competition on enterprise investment efficiency.