Equity Incentive,Audit Supervision And Inefficient Investment

In the context of structural reforms,the importance of investment activities is beyond doubt.As an important investment subject,the importance of enterprises’ investment efficiency is self-evident.In fact,under the business model of the separation of powers,managers often make investment decisions based on the maximization of their own interests rather than the maximization of shareholder value out of self-interest motives,so the problem of inefficient investment occurs from time to time.The reasons for the emergence of inefficient investment problems come from many aspects,such as the problem of information asymmetry in the principal-agent relationship,which provides the soil for the agents of the information superior party to seek private interests;the controlling shareholders of enterprises with concentrated shareholding structures hollow out enterprise resources for convenience and control management.Based on the stewardship theory,the management will be willing to be the faithful“steward” of the enterprise,but in view of the complex and changeable market environment,despite the best efforts,the management is not willing to invest in the investment There is also a situation of "powerlessness" in the control of the management,so inefficient investment cannot occur;managers’ self-esteem tends to be too high,which leads to their overconfidence in the investment projects,resulting in inefficient investment and so on.Based on the above discussion,in recent years,domestic scholars have explored the causes of inefficient investment from different perspectives,and proposed solutions from different perspectives.With the improvement of my country’s capital market,equity incentives have gradually become a common means of performance management for listed companies.High-quality external audits,as third-party regulators,have improved the quality of accounting information,and solved the principal-agent problem and information asymmetry.On the issue,the effect is remarkable.Therefore,this paper takes my country’s A-share listed companies from 2011 to 2020 as a sample,adopts the method of empirical research,discusses the problem of non-efficiency investment from the perspective of equity incentives and audit supervision,and uses external audit supervision as the moderating variable of equity incentives and non-efficiency investment.Discuss its moderating effect on equity incentive and inefficient investment.Through the empirical research results,it is found that: equity incentives have a significant promoting effect on inefficient investment,and have a significant promoting effect on overinvestment and under-investment respectively;audit supervision has a significant inhibitory effect on inefficient investment,and over-investment in enterprises.and underinvestment have significant inhibitory effects respectively;audit supervision has an inhibitory effect on the positive correlation between equity incentives and inefficient investment,but it is not significant.In this paper,the White test is carried out on the variables,and the result is that there is a heteroscedasticity problem.In view of this,this paper uses the weighted least squares method to perform a regression test on the data to eliminate the influence of heteroscedasticity,and uses robust regression to perform a robustness test;In this paper,the equity incentive industry mean as a tool variable,using a two-stage regression model for the test of endogenous;In order to exclude the influence of multicollinearity,this paper conducts VIF inflation factor test for inefficient investment,overinvestment and underinvestment respectively.The results showed that there was no multicollinearity among the variables.At present,scholars have different opinions on the impact of equity incentives on non-efficiency investment.The statement about audit supervision on non-efficiency investment is relatively consistent,and audit supervision has an inhibitory effect on equity incentive and non-efficiency investment.The moderating effect of the correlation between them is rarely studied by scholars,which is also an important innovation of this paper.