The Empirical Measurement of Enterprise Inefficient Investment – Richardson-Based Investment Expectation Model

Hu, Rong; Tian, Jingsong; Wu, Xiao‐Qin

doi:10.1007/978-3-642-29087-9_71

Cited by 3 publications

(3 citation statements)

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“…They support the firms through subsidies so as to develop their innovation and improve their competitiveness (Hu et al 2012). Furthermore, the investment funds incentivize the second mover firms to establish collaborative relationship with research centres and other firms in order to produce jointly new technologies.…”

Section: Discussionmentioning

confidence: 99%

“…The investment funds support the growth and efficient of second mover firms (Hu et al, 2012). In 2011, private investments has been increased of 37.1% in China and in Middle East of 44 % (WEF 2011) Another of the external factor that positively influences the performance of an second mover is the competitive environment.…”

Section: Imitation Innovation and Second Movers The China And Middlmentioning

confidence: 99%

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Innovation, Second Mover and Network System

Wang

Scuotto

2012

Symphonya. Emerging Issues in Management

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Section: Discussionmentioning

confidence: 99%

Section: Imitation Innovation and Second Movers The China And Middlmentioning

confidence: 99%

Innovation, Second Mover and Network System

Wang

Scuotto

2012

Symphonya. Emerging Issues in Management

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“…Inefficient investment includes overinvestment and underinvestment. Overinvestment means that enterprises invest in projects with negative NPV, whereas underinvestment means that enterprises do not invest in projects with positive NPV [35].…”

Section: Inefficient Investmentmentioning

confidence: 99%

Motives of Stock Option Incentive Design, Ownership, and Inefficient Investment

Shan

2018

Sustainability

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This paper analyzes the effects of stock option incentives on inefficient investment. Specifically, based on the motive of design, we divide stock option incentives into incentive-driven and welfare-driven incentives. Our research is based on the panel data of 511 Chinese listed companies that declared stock option incentives from 2010 to 2014, including both incentive-driven and welfare-driven incentives. Our research shows that different types of stock option incentives have different effects on inefficient investment. Generally, incentive-driven stock option incentives reduce inefficient investment, whereas welfare-driven stock option incentives do not reduce inefficient investment, but increase it. However, there is a weakening effect in state-owned enterprises due to two opposite factors, numerous restrictions and more self-interested managers. Additionally, the paper provides implications that some stock options are manipulated by managers in the designing stage in order to pursue self-interests, and therefore monitoring abnormal share price movement and performance hurdles is important to safeguard the wealth of shareholders and promote effective motivation for managers.

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Research on Inefficient Investment of Listed Companies in China

Qiu¹,

Wu²

2017

IJBM

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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.

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The Empirical Measurement of Enterprise Inefficient Investment – Richardson-Based Investment Expectation Model

Cited by 3 publications

References 0 publications

Innovation, Second Mover and Network System

Innovation, Second Mover and Network System

Motives of Stock Option Incentive Design, Ownership, and Inefficient Investment

Research on Inefficient Investment of Listed Companies in China

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