Incentives and Investment Efficiency: The Evidence From Listed Family Firms

DOI

10.2991/aebmr.k.210218.023How to use a DOI?

Keywords

listed family firm, stock incentives, payment incentives, investment of efficiency

Abstract

In the process of the economy in China, listed family firms have a large proportion of all the listed companies, which plays an important role in China. By selecting the statistics in the recent five years from CSMR and Wind, OLS model is used to investigate the efficiency investment. After distincting the groups of overinvestment and underinvestment, we present the figures for stock and payment incentive and exam regression with residuals respectively, as well as exploring the relationship between incentive and efficient investment. The results indicate that the level of payment and stock incentive has a negative impact on the inefficiency investment. Therefore, if family firms carry out the incentive, it could be helpful to alleviate the inefficiency, grasp a good chance, relieve information asymmetry and reduce the agency issues. The results recommend that listed family firms could implement stock and payment incentive plans, like other listed companies to motivate the managers.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yun Sun
AU  - Haomin Zhang
AU  - Tong Zhou
AU  - Xiaosong Bi
AU  - Shaosong Wang
PY  - 2021
DA  - 2021/02/19
TI  - Incentives and Investment Efficiency: The Evidence From Listed Family Firms
BT  - Proceedings of the 5th Asia-Pacific Conference on Economic Research and Management Innovation (ERMI 2021)
PB  - Atlantis Press
SP  - 119
EP  - 124
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210218.023
DO  - 10.2991/aebmr.k.210218.023
ID  - Sun2021
ER  -