Notice of RetractionCost of capital and investment efficiency

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

The paper researches the relationship between over-investment behaviors of listed companies and cost of capital from a financing point of view, and analyzes reasons of over-investment of Chinese companies from the more basic level. In China there has been a special financing phenomenon inconsistent with the pecking order theory: the preference for equity financing. The paper´s empirical test showed that Chinese companies over-investment and low cost of capital is closely related, and the relationship is more significant in the state-owned companies than non-state-owned companies, the reason for which is that state-owned companies´ corporate governance is lower than those of private-owned companies.