Managerial Power and Investment Efficiency——Fixed Effect Model Based on Panel Data

Investment, as a key link in modem business activities, plays a decisive role in the sustainable development of enterprises. This paper selects the data of A-share listed companies from 2015 to 2019 as the research sample, analyzes the investment efficiency behavior based on the Richardson investment expectation model, and then uses the panel data fixed-effect model to test the impact of management power on investment efficiency, and further discussed the regulatory role of the institutional environment on the two. The empirical results show that the greater the power of the management, the higher the degree of inefficient investment of the company; and the institutional environment has a negative regulatory effect on the relationship between the two. The higher the degree of external marketization, the more effectively the inefficiency under the power of the management can be suppressed, investment. The study of the impact on investment efficiency from the perspective of institutional environment and management power has important theoretical significance for enriching and improving internal corporate governance theories and external markets and theories.