Equity Concentration and Investment Efficiency
DOI:
https://doi.org/10.54097/fbem.v11i2.12580Keywords:
Equity concentration, Internal control, Investment efficiency, Empirical.Abstract
Investment activities are the core components of a company's financial operations, and the efficiency of these investments can significantly impact the company's operational status, profitability, value creation, and future development. This article focuses on A-share listed companies, first analyzing the factors that influence the efficiency of corporate investments. It then explores the specific impact of equity concentration on inefficient investments. The study utilizes empirical analysis methods and data from A-share listed companies in non-financial industries from 2017 to 2020. The research concludes that there is a significant positive correlation between equity concentration and inefficient investments. To ensure the reliability of the empirical results, robustness tests were conducted on the sample regression results.
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