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Effect of Equity Incentive on Inefficient Investment in Chinese State-owned Enterprises

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  • Liu Yan

Abstract

This study examines the impact of equity incentive on inefficient investment based on the sample of Chinese listed companies of Shanghai stock market. I show that- both of over-investment and under-investment are existed among state-owned enterprises, the level of under-investment is worse than the level of over-investment, equity incentive is not that popular among state-owned enterprises; equity incentive can limit over-investment as well as under-investment significantly, so universality of equity incentive among state-owned enterprises needs to be improved.

Suggested Citation

  • Liu Yan, 2016. "Effect of Equity Incentive on Inefficient Investment in Chinese State-owned Enterprises," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(8), pages 222-222, August.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:8:p:222
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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