Research On The Impact Of Stock Liquidity On The Investment Efficiency Of Listed Companie

For a long time,investment has been an important engine for maintaining rapid economic growth in China,which playing a crucial role in driving economic growth.However,the low investment efficiency of listed companies in China has become a hindrance to China entering the stage of high-quality development.The capital market in Our country has developed rapidly with the reform of the financial market,and the impact of the capital market on the investment efficiency of listed companies has also received attention from scholars.Relevant research shows that stock liquidity can play a significant role in the internal factors such as stock price information content,agency costs,management compensation incentives,etc.However,the equity concentration ratio of listed companies in China is high,and the impact of stock liquidity on the internal factors of listed companies is restricted by the equity balance structure.Therefore,this paper attempts to explore the impact of stock liquidity on company investment efficiency from the perspective of equity balance.This article selects non-financial listed companies in A-share market from 2008 to2021 for empirical testing.Firstly,OLS regression is used to obtain indicators of investment efficiency for listed companies;Secondly,using stock liquidity indicators and investment efficiency indicators as explanatory and dependent variables,a fixed effects model was used to test the impact of stock liquidity on investment efficiency;Thirdly,the product of stock liquidity and equity balance was used to test whether equity balance played a moderating role in the mechanism of action;Finally,the robustness test is carried out by replacing the explanatory variable and the explained variable,and the endogeneity problem that may exist in the model is solved by two-stage least square method.The research results show that: firstly,there is a positive correlation between stock liquidity and investment efficiency of A-share listed companies in China.The higher the stock liquidity of a company,the higher the investment efficiency;Secondly,equity balance has a positive regulatory effect on stock liquidity and enterprise efficiency investment.The greater the degree of equity balance,the stronger the promoting effect of stock liquidity on enterprise investment efficiency.Heterogeneity testing found that in large-scale enterprises,non-state-owned enterprises,and when financing constraints are high,equity checks and balances have a stronger moderating effect on stock liquidity and investment efficiency.Based on the above research,this article proposes the following three suggestions: firstly,relevant regulatory authorities should moderately relax restrictions to improve stock liquidity,so that the increase in stock liquidity can bring about standardization of internal corporate governance,thereby improving the investment efficiency of listed companies;Secondly,encourage the development of institutional investors,increase their checks and balances with controlling shareholders,crack down on insider trading,and protect the interests of small and medium-sized shareholders;Thirdly,listed companies must focus on optimizing their equity structure,strengthening company information disclosure,and strengthening the protection of small and medium-sized investors,allowing more shareholders to participate in the daily supervision of the company,so that equity checks and balances can improve investment efficiency.