Journal of Investment and Management

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The Research of Corporate Governance, Industrial Over-investment and Corporate Over-investment

Received: 06 June 2017    Accepted:     Published: 06 June 2017
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Abstract

The corporate governance of listed companies is the focus and hot spot of financial research in recent years. Using a sample of A-share listed firms in China for the period 2003-2015, the paper investigates corporate governance on the relationship between industrial over-investment and the over-investment. The results show that: (1) The information transparency restrains the positive relationship between industrial over-investment and the next period of over-investment. (2) Major shareholder increases the positive relationship between industrial over-investment and the over-investment.

DOI 10.11648/j.jim.20170601.19
Published in Journal of Investment and Management (Volume 6, Issue 1, February 2017)
Page(s) 56-59
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Over-investment, Industrial Over-investment, Information Transparency, Major Shareholder

References
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[5] Yu Honghai, Xu Longbing, Chen Baizhu. Ultimate Controlling Shareholder Control and Free Cash Flow Over-investment [J]. Economic Research, 2010, (08): 103-114.
[6] Li Xiaorong, Dong Hongye, Zhang Ruijun. Does Corporate CEO Power Influence Bank Lending Decisions? [J]. Finance and Trade Economics, 2015, (07): 81-95.
[7] Foucault T, Fresard L. Learning from Peers’ Stock Prices and Corporate Investment [J]. Journal of Financial Economics, 2013, 111(3): 554-577.
[8] Richardson S. Over-investment of Free-cash Flow [J]. Review of Accounting Studies, 2006, 91(2): 159~189.
[9] Dechow P M, Sloan R G. Sweeney A. P. Detecting Earnings Management [J]. The Accounting Review, 1995, 70: 193-225
[10] Shen Huihui, Yu Peng. Wu Liansheng. State Owned Shares, Environmental Uncertainty and Investment Efficiency [J]. Economic Research, 2012, (7): 113-126.
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Author Information
  • The School of Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China

  • The School of Business, Central University of Finance and Economics, Beijing, P. R. China

  • The School of Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China

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  • APA Style

    Su-yuan Tian, Ping Ye, Ke Gao. (2017). The Research of Corporate Governance, Industrial Over-investment and Corporate Over-investment. Journal of Investment and Management, 6(1), 56-59. https://doi.org/10.11648/j.jim.20170601.19

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    ACS Style

    Su-yuan Tian; Ping Ye; Ke Gao. The Research of Corporate Governance, Industrial Over-investment and Corporate Over-investment. J. Invest. Manag. 2017, 6(1), 56-59. doi: 10.11648/j.jim.20170601.19

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    AMA Style

    Su-yuan Tian, Ping Ye, Ke Gao. The Research of Corporate Governance, Industrial Over-investment and Corporate Over-investment. J Invest Manag. 2017;6(1):56-59. doi: 10.11648/j.jim.20170601.19

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  • @article{10.11648/j.jim.20170601.19,
      author = {Su-yuan Tian and Ping Ye and Ke Gao},
      title = {The Research of Corporate Governance, Industrial Over-investment and Corporate Over-investment},
      journal = {Journal of Investment and Management},
      volume = {6},
      number = {1},
      pages = {56-59},
      doi = {10.11648/j.jim.20170601.19},
      url = {https://doi.org/10.11648/j.jim.20170601.19},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jim.20170601.19},
      abstract = {The corporate governance of listed companies is the focus and hot spot of financial research in recent years. Using a sample of A-share listed firms in China for the period 2003-2015, the paper investigates corporate governance on the relationship between industrial over-investment and the over-investment. The results show that: (1) The information transparency restrains the positive relationship between industrial over-investment and the next period of over-investment. (2) Major shareholder increases the positive relationship between industrial over-investment and the over-investment.},
     year = {2017}
    }
    

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    AB  - The corporate governance of listed companies is the focus and hot spot of financial research in recent years. Using a sample of A-share listed firms in China for the period 2003-2015, the paper investigates corporate governance on the relationship between industrial over-investment and the over-investment. The results show that: (1) The information transparency restrains the positive relationship between industrial over-investment and the next period of over-investment. (2) Major shareholder increases the positive relationship between industrial over-investment and the over-investment.
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