Exchange rate And Enterprise Investment Efficiency

Abstract

With the change of the political and economic situation at home and abroad, the economic policy and economic environment also change accordingly, and the exchange rate, as an important macroeconomic policy indicator, is also constantly changing. Based on the data of the actual effective exchange rate of RMB released by the Bank of International for International Settlements from 2010 to 2022, this paper verifies the relationship between the actual effective exchange rate of RMB and the investment efficiency of China's A-share listed companies. After empirical analysis, the research results of this paper show that: The rise of the real effective exchange rate of RMB reduces the degree of non-efficient investment of enterprises, mainly reducing the degree of insufficient investment of enterprises, and thus improving the investment efficiency of listed companies. In addition, this paper makes an in-depth analysis from the two aspects of equity concentration and enterprise scale, and concludes that in small-scale enterprises and enterprises with high equity concentration, the positive impact of RMB appreciation on enterprise investment efficiency will be more significant.