Equity concentration and investment efficiency of energy companies in China: Evidence based on the shock of deregulation of QFIIs

摘要

This paper empirically tests the impact of equity concentration on the investment efficiency of Chinese energy companies based on the shock that the shareholding ratio restriction of qualified foreign institutional investors (QFIIs) is relaxed. We find that equity concentration significantly improves energy companies' investment efficiency in China. Equity concentration affects the investment efficiency by influencing the first type of agency cost and the information environment. Equity concentration plays a significant role in improving the investment efficiency when the decision-making power is decentralized while the external environment is complex. (C) 2020 Elsevier B.V. All rights reserved.