Investment Efficiency Of Enterprises Research Articles

Enhancing enterprise investment efficiency through artificial intelligence: The role of accounting information transparency

In the post-COVID-19 era, with global economic recovery as a critical goal, the rapid development of artificial intelligence (AI) has emerged as a key driver of economic growth and transformation. AI not only acts as a powerful catalyst for economic development but also significantly impacts enterprise investment efficiency (EIE). This paper explores the influence of AI on EIE, with a focus on the role of accounting information transparency. Using data from Shanghai and Shenzhen A-share listed enterprises between 2010 and 2021, the findings demonstrate that AI development significantly enhances EIE. These results are confirmed through robustness tests, including variable substitution, and addressing endogeneity and sample limitations. Mechanism analysis reveals that AI improves EIE by increasing the transparency of accounting information. Additionally, heterogeneity analysis shows that AI has a greater impact on the investment efficiency of high-tech and technology-intensive enterprises, non-state-owned enterprises, and those located in highly urbanised areas, such as ‘Broadband China’ pilot cities. This paper examines how AI development affects EIE through the lens of enterprise accounting information transparency, offering actionable insights for enhancing accounting disclosures and serving as a valuable resource for enterprises navigating the technological transformation of the modern era.

The impact of FinTech adoption on corporate investment: Evidence from China

This research uses panel statistics of Chinese listed companies between 2010 and 2020 to examine when and how financial technology (FinTech) improves the investment efficiency of firms. We determine that the degree of FinTech is positively related to firm investment efficiency. This correlation tends to occur in areas with low levels of commercialization and urban growth, which is indicative of the broad characteristics of FinTech. Simultaneously, the positive effect of FinTech further strengthens the investment efficiency of enterprises through corporate governance and financing paths.

The impact of macroeconomic policy uncertainty on micro-enterprise investment efficiency-Empirical evidence from China.

The impact of macroeconomic policy uncertainty (EPU) on micro-level entities has garnered increasing attention in economic circles. This study examines the influence of EPU on the efficiency of investments made by China's A-share listed companies between 2016 and 2021. Using a panel fixed effect model for analysis, the research reveals that EPU has a notable adverse effect on the investment efficiency of enterprises. Furthermore, it suggests that advancements in digital finance, strong ESG performance, and enhanced entrepreneurial confidence can mitigate this negative impact effectively. The study also highlights that enterprises with lower valuation, shareholder control, limited audit reputation, and no bank connections are more vulnerable to the impact of EPU on investment efficiency compared to those with higher valuation, manager control, strong audit reputation, and bank connections. Consequently, future efforts should be directed towards enhancing the stability and relevance of economic policies, promoting digital finance, and enhancing corporate governance structures.

Equity Concentration and Inefficient Investment

Enterprise investment efficiency has been a hot topic of concern to all walks of life, and equity concentration, as an important element of corporate governance and modern enterprise construction, has attracted extensive attention from the academic community. Hence, this paper provides theoretical analyses and empirical tests on the relationship between corporate inefficient investment and equity concentration. After regression analysis, this paper finds that there is a significant negative relationship between equity concentration and the degree of inefficient investment, which confirms the hypothesis that equity concentration reduces the level of inefficient investment; compared to the company with CEO duality, in the case of equity concentration, the separation of decision-making power and decision-controlling power is more able to reduce the level of inefficient investment; However, the allocation of decision-making power does not have a significant effect on this relationship mechanism. This paper provides some theoretical basis and implications for how enterprises can optimise their shareholding structure and promote the reform of corporate governance modernisation so as to enhance investment efficiency.

De-familiarization governance and family firm investment efficiency

Investment efficiency is a bottleneck problem in the development of Chinese family enterprises. The study takes Chinese family-listed companies as samples to explore the impact of de-familiarization governance on investment efficiency of these firms. It is found that de-familiarization governance can effectively improve investment efficiency of enterprises, and this effect is particularly pronounced in the context of environmental uncertainty. Mechanism tests reveal that de-familiarization governance improves the investment efficiency of family businesses by enhancing managerial ability and promoting digitalization. Further analysis shows that in the context of relatively low industry competitiveness, the positive effect of de-familiarization governance on investment efficiency is more significant. The conclusions enhance our understanding of dynamic development and behavioral impact of family business governance within the current economic context, and provide new insights for family businesses seeking to enhance investment efficiency and undergo transformation and upgrading.

Unveiling the enigma: Exploring how uncertain crude oil prices shape investment expenditure and efficiency in Chinese enterprises

As a crucial energy resource, crude oil plays a vital role in propelling global economic progress. China's energy consumption is extensive due to its position as the second-largest global economy and leading importer of crude oil. A stable crude oil supply can support China's steady economic growth. The China Crude Oil Futures (INE) launch in 2018 has enriched the WTI and Brent crude oil market systems, further consolidating the critical position of crude oil in China's economic and financial development. Therefore, this paper first examines the impact of crude oil price uncertainty on the investment activities of Chinese micro-enterprises by selecting three crude oil futures: WTI, Brent, and INE. Based on the quarterly (half-year) report of Shanghai and Shenzhen A-share listed enterprises from 2008 to 2023, this study examines the effects of uncertainty in crude oil prices on investment spending and efficiency inside enterprises and the underlying mechanisms that drive these effects. This study provides evidence that the fluctuation in crude oil prices has a detrimental impact on investment expenditure, while concurrently improving the investment efficiency of enterprises. The mechanism test also demonstrates that the volatility of crude oil prices has the potential to diminish investment expenditure and enhance the investment efficiency of enterprises. On the macro level, it mainly depends on reducing the macroeconomic boom index, enterprise boom index, and entrepreneur confidence index. At the micro level, it relies on increasing enterprise cash flow, lowering enterprise investment expectations and consumer product demand. Further heterogeneous analysis indicates that during significant events such as the global COVID-19 pandemic and the Russia-Ukraine conflict, there is a substantial increase in crude oil price uncertainty, leading to reduced enterprise investment expenditure and improved enterprise investment efficiency. Furthermore, the volatility associated with the increase in oil prices has a more pronounced effect on investment outlays and operational effectiveness. Moreover, the volatility of crude oil prices significantly influences the investment expenditure and investment efficiency of enterprises in the secondary industry and non-state-owned sectors. This empirical study examined the causal relationship between crude oil price, investment spending, and investment efficiency. The results of this investigation enhance the current scholarly knowledge on the relationship between crude oil prices and investment, so contributing to the advancement and refinement of this particular field of inquiry. This paper makes a valuable exploration and attempt to explain the mechanism of the impact of crude oil price on the investment activities of micro-enterprises.

Risks and Control Measures in Enterprise Investment Management

As an important component of China's economy, the investment management level of state-owned enterprises directly affects their operational efficiency and market competitiveness. However, in the increasingly complex and volatile global economic environment, the investment management of state-owned enterprises is facing increasingly severe challenges. The traditional investment management models and methods are no longer suitable for the needs of modern markets, and there is an urgent need to improve the level of investment management through optimization and innovation. This article takes state-owned enterprises as the research object, deeply analyzes the main risks they face in investment management, and proposes targeted countermeasures. This not only helps to improve the investment efficiency of enterprises, ensure the safety and appreciation of state-owned assets, but also provides a solid foundation for enterprises to achieve sustainable development in the complex and ever-changing market environment.

The impact of credit risk on labor investment efficiency

Labor investment inefficiency has become a primary focus of academic attention and research. However, existing research has given little attention to the causes of labour investment inefficiency, especially the lack of in-depth research on what key factors inhibit the labour investment efficiency of enterprises and what measures can be effectively taken to improve investment efficiency. Based on a responsibility perspective and empirical evidence from listed companies from 2010 to 2022, the paper empirically shows that credit risk significantly reduces firms' labour investment efficiency and social trust can inhibit such negative effects. Our findings present clear policy implication for the regulators and managers.

The moderate level of digital transformation: from the perspective of green total factor productivity.

In the context of accelerated development of the digital economy, whether enterprises can drive green total factor productivity (GTFP) through digital technology has become the key to promoting high-quality development of the economy and achieving the goal of "dual-carbon", However, the relationship between digital transformation and GTFP is still controversial in existing studies. Based on the data of 150 listed companies in China's A-share energy industry from 2011 to 2021, this study empirically analyzes the impact of digital transformation on GTFP using a fixed-effect model. The study shows an inverted U-shaped nonlinear effect of digital transformation on enterprises' GTFP, and the conclusion still holds after a series of robustness tests. Mechanism analysis shows that enterprise investment efficiency and labour allocation efficiency play a significant mediating role in the above inverted U-shaped relationship, in which the inverted U-shaped relationship between digital transformation and GTFP mainly stems from the influence of enterprise investment efficiency. Heterogeneity analysis finds that the inverted U-shaped relationship between digital transformation and GTFP of enterprises is more significant in large-scale enterprises, new energy enterprises and enterprises in central and western regions. The study's findings provide important insights for enterprises to promote digital transformation and realize the green and high-quality development of the energy industry.

International oil price uncertainty and enterprise investment efficiency: An empirical research of listed companies in China.

This article investigates the effect of international oil price uncertainty on investment efficiency using quarterly data of Chinese A-share listed companies from 2011 to 2020. It is discovered that uncertainty about oil prices increases principal-agent conflicts and information asymmetry in enterprises, leads to more inefficient investment, and ultimately lowers firms' investment efficiency. Furthermore, China's unique property rights foundation, firm size, and life cycle limit the aforementioned consequences. Additional investigation reveals that by raising companies' cash reserves, oil price uncertainty exacerbates overinvestment behavior. The study presented in this article can serve as a guide for businesses looking to make the best decisions in the context of volatile global oil prices and support their long-term, stable development.

基于多元回归分析CEO职业经历丰富度对投资效率的影响研究

基于多元回归分析CEO职业经历丰富度对投资效率的影响研究

The Influence of Equity Incentive and its Concentration Degree on Enterprise Investment Efficiency

As an important part of China's modern industrial system, high-tech industry has long-term inefficient investment problems due to the characteristics of high investment demand, high risk and long cycle. As an incentive and constraint mechanism based on the principal-agent theory, equity incentive can effectively reduce the agency cost and improve the investment efficiency of enterprises. Based on the different perspective of equity incentive between senior executives and core technical personnel, this paper takes the sample of equity incentive in 2018-2022 to test the impact of equity incentive on the investment efficiency of enterprises. The results show that equity incentive can effectively improve the investment efficiency, alleviate the investment shortage and restrain the excessive investment; equity concentration plays a negative effect on the relationship between equity incentive and enterprise investment efficiency; compared with executive equity incentives, core technical personnel equity incentives have a more significant effect on improving investment efficiency, Therefore, enterprises should pay attention to improving the level of equity incentive; focus on the influence of equity structure on the utility of equity incentive and prevent excessive equity concentration; when designing equity incentive plans, focus on incentivizing core technical personnel.

The effect of tax credit reporting on the efficiency of enterprise labor investment

This paper uses the data of A-share listed enterprises in Shanghai and Shenzhen from 2010 to 2022 as samples for empirical analysis. The empirical research finds that tax credit reporting has A significant positive impact on the labor investment efficiency of enterprises, and this impact is achieved by reducing the internal and external financing constraints of enterprises. In addition, the heterogeneity test results show that the labor investment efficiency of private enterprises is more likely to be affected by the change of corporate tax credit rating.

Minimum wage and corporate investment efficiency: Evidence from China

This article uses China's A-share listed companies from 2002 to 2020 as a sample, to study the relationship between MW increases and company investment efficiency. The results show that the minimum wage has a significant promotion effect on the investment efficiency of enterprises. The reasons for this situation are: on the one hand, an increase in the minimum wage will increase operating expenses and labor costs, and companies will proactively adjust their production and investment strategies. On the other hand, the increase in per capita capital stock will promote the creativity of enterprises, bring about technological progress and productivity improvement.

Environmental pollution liability insurance pilot policy and enterprise green transformation: evidence from Chinese listed corporates

In the context of dual-carbon, corporate green transformation, a significant measure of the green effect of Environmental Pollution Liability Insurance (EPLI), garners substantial attention in current research. By leveraging the 2008 EPLI pilot policy as an exogenous event, this paper employs a difference-in-difference model to scrutinize the influence of the EPLI pilot on the green transformation of listed companies. We find that: (1) The EPLI pilot actively promotes corporate green transformation. (2) The pilot policy’s impact on green transformation is mediated through regional green development and enterprise investment efficiency. (3) The pilot policy manifests asymmetric effects on green transformation, influenced by regional, industrial, and enterprise-specific pollution levels, as well as government environmental concerns. (4) The EPLI pilot policy engenders enduring financial implications and contributes to the governance of information. This study is beneficial to enrich the research on the EPLI system and green transformation of enterprises that provide policy suggestions for improving the green financial system and promoting the green transformation of enterprises.

The Effect of Corporate Digitalization on Investment Efficiency: Analysis of Theory and Model Design

This study examines a large amount of literature to sort out the relevant studies on enterprise investment efficiency, enterprise digitization and the effect of industry digitization on enterprise investment efficiency. The paper provides a theory analysis of the effect of enterprise digitization on investment efficiency as a whole. Theoretical level proves that enterprise digitalization can significantly improve the overall enterprise investment efficiency. While investment efficiency is classified into overinvestment and underinvestment, enterprise digitization has different effects on them. Although enterprise digitization can significantly inhibit over-investment and alleviate under-investment of enterprises, it exerts a stronger inhibitory effect on over-investment. Subsequently, the mechanism of enterprise digitization's impact on investment efficiency is further analyzed theoretically, and the research hypothesis is proposed. Then the sample selection, index selection and model building are introduced. Finally, the next step is proposed, and empirical analysis is carried out based on the model proposed in the research design in the hope of proving the impact of enterprise digitalization on the efficiency of investment.

Exchange rate And Enterprise Investment Efficiency

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.

The disappearing of firm investment efficiency: From the perspective of the discrepancy between production and consumption prices

This paper investigates the impact of the widening PPI-CPI price scissors on firm investment efficiency, based on the data from listed companies in the energy sector during 2010–2021. The results show that the widening of the PPI-CPI price scissors will inhibit the investment efficiency of enterprises, mainly by triggering overinvestment. Besides, enterprises with low valuation and private enterprises are more significantly affected by the price scissors. Inventory control and adjustment are the main impact mechanism in the above effects. This paper provides an insight for enterprises’ managers to understand the consequences and mechanisms of PPI-CPI price scissors.

Digital finance and enterprise investment efficiency in China

This paper uses the panel data of Chinese listed enterprises from 2010 to 2019 to explore the relationship between digital finance (DF) and enterprise investment efficiency. The result of two-way fixed effects regression shows that the DF significantly improves enterprise investment efficiency. And the result is robust to different indicators of digital finance and possible endogenous biases. Further mechanism analyses find that the impact of DF on total debt was insignificant whereas it significantly changes financial composition which in turn affects the investment efficiency of enterprises. Specifically, the mediating effect of financial structure changes in both magnitude and direction with respect to the type of loans, and investment efficiency of under- and over-invested enterprises responses asymmetrically to the DF-induced financial structure adjustments. Overall, financial diversity decreases significantly with the inclusion of DF, which in turn improves enterprise investment efficiency. The results of this paper indicate that, in order to improve investment efficiency, the composition adjustment effect of DF should be further exerted with financing inclined to credit loans and guaranteed loans and guarding against excessive looseness of mortgage loans.

Environmental protection fee-to-tax and enterprise investment efficiency: Evidence from China

This study takes an environmental protection tax as its research background and uses the difference-in-differences method to study the effect of environmental taxes on the investment efficiency of enterprises. The results show that the implementation of environmental taxes significantly reduces the investment efficiency of enterprises. Further evidence shows that the negative effect of environmental taxes on investment efficiency is partly due to a blind increase in the scale of green investment after the policy is implemented and partly because the overall efficiency of green investment is low. Heterogeneity test results show that there are significant differences in the effect of the implementation of environmental taxes policy on the enterprises with various firm ownership characteristics, geographical locations and enterprise sizes. The conclusions of this study provide a basis for China to achieve the goal of carbon emissions peaking and carbon neutrality, and also provide theoretical guidance for other countries.