Exploring the Effects of Managerial Capability on Investment Efficiency: The Moderating Role of Property Rights

Abstract

Taking 50 companies listed in Shanghai and Shenzhen stock market from 2015 to 2019 as sample, the DEA-Tobit model is used to measure the managerial capability in two steps, and OLS regression is used to test whether the managerial capability affects the investment efficiency. We further test the moderating effect of property rights on the relationship between managerial capability on investment efficiency.  Empirical results show that managerial capability positively influences investment efficiency. Further research indicates that, compared to privately-owned enterprises, state-owned enterprises will restrain the effect of managerial capability to improve investment efficiency.