It should be noted that I make no claims that agency cost is the only underlying cause of the accruals-future profitability relationship; in fact, an over-investment
explanation could even be nested within a broader theory of diminishing marginal returns on investments.
China is "full of opportunities, but bloated by over-investment
in many sectors," warned panelist Xu Xiaonian, a professor of economics at the China Europe International Business School (CEIBS).
lt;span style="mso-spacerun: yes;"> </span>The end result was over-investment
in infrastructure and over-construction in buildings, which did not bear fruit for the money spent and offers only a shaky foundation for further economic growth
But professor Xu Xiaonian of the China Europe International Business School in Shanghai said the strategy supports structural imbalances -- over-investment
, surplus production capacity, and under-consumption -- while neglecting long-term objectives.
The banking sector had been overstretched by too many bad loans and over-investment
in the capital market and the oil and gas sectors when commodity prices were high.
If that does not happen, there will be over-investment
, and inefficient investment.
IOC top managers, to the reverse, are more concerned about career-ending decisions of over-investment
These were increasing at an alarming rate on many farms, due largely to over-investment
encouraged by favourable tax allowances and numerous grants.
A spokesperson for the company said that IT services spending is now growing by more than GDP and the recovery is expected to last until mid-2005 - the IT services industry is reportedly still suffering from over-investment
in 1999 and during the Internet bubble.
China's central bank is expected to raise reserve requirements for some weak banks in an effort to stem over-investment
and rising inflation.
There was too much excess, too much enthusiasm and over-investment
," he says.
The collapse of Cellar 5, with its Booze Buster fascia, has left fingers pointing at supermarkets' cut-throat drinks prices, although a longer-term appraisal might point to over-investment
in expensive retail brand concepts in the 1990s and high ongoing costs.