African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4171

Full Length Research Paper

Ownership structure, financing constraints and inefficient investment: empirical analyses of Chinese data

Hong-xing Tu
  • Hong-xing Tu
  • School of Economics and Management, Hubei Polytechnic University, Huangshi 435003, China.
  • Google Scholar

  •  Received: 28 July 2021
  •  Accepted: 15 September 2021
  •  Published: 31 October 2021


Using the data of A-share listed companies in Shanghai and Shenzhen stock exchanges from 2008 to 2017, this paper empirically tests the moderating role of ownership structure between financing constraints and inefficient investment. The study found that rational use of the moderating effect of ownership structure is of great significance to improve the investment efficiency of enterprises. When there are financing constraints, managerial ownership is more sensitive to the improvement of inefficient investment. The concentration of equity strengthens the sensitivity of insufficient investment caused by financing constraints, intensifies the degree of insufficient investment of enterprises, and the state-owned holding enterprises are more affected. On this basis, the paper puts forward relevant policy suggestions to improve the inefficient investment of enterprises.


Key words: Financing constraints, inefficient investment, ownership structure, adjustment effect.