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Research on Inefficient Investment of Listed Companies in China

Author

Listed:
  • Dongfang Qiu
  • Huinan Wu

Abstract

Using samples of A-share listed non-financial companies of 2015, This paper summarizes the research methods of inefficient investment and an effective method is chosen to measure the listed companies in China. The research in this paper shows that- China's listed companies generally exist inefficient investment and there are more companies with less investment, but the scale of inefficient investment is lager in overinvestment. In addition, this paper also provides some suggestions on how to reduce inefficient investment.

Suggested Citation

  • Dongfang Qiu & Huinan Wu, 2017. "Research on Inefficient Investment of Listed Companies in China," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(1), pages 238-238, December.
    • Handle: RePEc:ibn:ijbmjn:v:13:y:2017:i:1:p:238
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    References listed on IDEAS

    as
    1. Nick Bloom & Stephen Bond & John Van Reenen, 2007. "Uncertainty and Investment Dynamics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(2), pages 391-415.
    2. Oliver Hart & Luigi Zingales, 2015. "Liquidity And Inefficient Investment," Journal of the European Economic Association, European Economic Association, vol. 13(5), pages 737-769, October.
    3. Vasia Panousi & Dimitris Papanikolaou, 2012. "Investment, Idiosyncratic Risk, and Ownership," Journal of Finance, American Finance Association, vol. 67(3), pages 1113-1148, June.
    4. Nancy Stokey, 2016. "Wait-and See: Investment Options under Policy Uncertainty," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 21, pages 246-265, July.
    5. Ei Yet Chu & Saw Imm Song, 2010. "Information Asymmetry and Earnings Management: Causes of Inefficient Investment in Malaysia," Capital Markets Review, Malaysian Finance Association, vol. 18(1&2), pages 1-21.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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