Author(s)

Honghui Zhang

School of Accountancy, Jiangxi University of Finance and Economics, Nanchang, China.

This paper focuses on the impact of environmental uncertainty on investment efficiency, taking into account the effect of executive equity incentives on inefficient investments in opportunity investment set. Using the empirical data of listed companies, the study found that environmental uncertainty will increase investment efficiency and reduce over-investment level. Executive equity incentive will reduce the over-investment level and promote the lack of investment.

Environmental Uncertainty, Executive Equity, Investment Efficiency

Zhang, H. (2017) Uncertainty, Incentive and Over/Under-Investment. Open Journal of Business and Management, 5, 450-457. doi: 10.4236/ojbm.2017.53038.