Study on the Relationship of Ownership Structure and Over-Investment of China's Listed Companies

摘要

Investment in the company's financial activities has been one of the most important subjects. With the complexity and multiplicity of factors which influence investment decision-making, investment decision-making behavior not always serve the goal of listed companies, which results in the inefficient investment especially over-investment. This paper selects the companies which listed in Shanghai and Shenzhen stock market as research sample from 2013 to 2017 year, by using the Richardson's (2006) residual model to measure the over-investment. Then three groups of multi regression analytical models have been built in three aspects which consist of the ownership concentration, the ultimate controller and the equity restriction to analyze the relationship between ownership structure and over-investment behavior. With empirical research, this paper has the following conclusions. The first majority shareholder's holding is significantly "U-shape" correlated with over-investment. Equity restriction has negative correlation with over-investment. Over-investment of state-holding listed company is more than the over-investment of non-state-holding, but is not significant.