The empirical test on investment efficiency and influence of equity incentive in supply‐side structural reform: Based on the two‐tier stochastic frontier approach

摘要

> This paper first empirically measured the investment efficiency and the influence of equity incentive on investment efficiency of listed companies in China within supply‐side structural reform based on the two‐tier stochastic frontier approach. The two‐tier stochastic frontier model was combined with the traditional Richardson Model and the data of empirical test were based on the nonfinancial companies, which is listed on Shanghai and Shenzhen A‐Share Markets in the period 2009 to 2015. On the aspect of investment efficiency, the different results were obtained from the overall empirical test, and further tests grouped by property rights, scales, and regions, and the corresponding reasons were analyzed. On the other aspect of influence of equity incentive on investment efficiency, the results showed that the implementation of equity incentive contributed to improve the overinvestment and underinvestment but the effects were not considerable in Chinese listed companies studied in this paper. Last, some suggestions on the problems found during the research were put forward.