Research Article
Business Strategy and Investment Efficiency
@INPROCEEDINGS{10.4108/eai.6-1-2023.2330314, author={Xuetong Ding}, title={Business Strategy and Investment Efficiency}, proceedings={Proceedings of the 2nd International Conference on Big Data Economy and Digital Management, BDEDM 2023, January 6-8, 2023, Changsha, China}, publisher={EAI}, proceedings_a={BDEDM}, year={2023}, month={6}, keywords={business strategy investment efficiency}, doi={10.4108/eai.6-1-2023.2330314} }- Xuetong Ding
Year: 2023
Business Strategy and Investment Efficiency
BDEDM
EAI
DOI: 10.4108/eai.6-1-2023.2330314
Abstract
The 2021 Central Economic Work Conference clearly stated that infrastructure investment should be moderately advanced. Efficient investment decisions can not only help enterprises grow, but also play an important role in promoting industrial technology innovation and creation. This paper obtains relevant data of A-share listed companies from 2010 to 2020 from CSMAR database, and uses empirical research methods to test the relationship between business strategy and investment efficiency. The conclusion is that business strategy has a significant impact on corporate investment efficiency. Compared with defenders, the impact on prospectors is greater. Such kind of companies’ investment efficiency is lower than that of defenders. The conclusions of this paper are still significant after the robustness test. Further analysis finds that the inefficiency of corporate investment caused by offensive strategies was mainly manifested as exacerbating overinvestment.
