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Research On Influence Factors Of State-owned Enterprises Investment Behavior

Posted on:2016-09-30Degree:DoctorType:Dissertation
Country:ChinaCandidate:M H FengFull Text:PDF
GTID:1109330503451344Subject:Financial management
Abstract/Summary:PDF Full Text Request
With the deepening of state-owned enterprises(SOEs) and the strategic readjustment in the distribution of the state-owned economy,state-owned assets are still firmly in control of the lifeline of the national economy and playing a leading role in economic development though the proportion of state-owned economy is slowly decreasing,. The expansion and the development of state-owned sector of the economy rely heavily on the investment of SOEs.Basing on the empirical evidences from Guangdong’s SOEs, this thesis analyzes the influence factors of SOEs’ investment behavior by utilizing the modern financial theory and the behavior finance theory.This thesis argues that, the particular characteristics of shareholders and actual controllers have decided the particular financial strategy objective of the SOEs: maximize the value of the national ownership, that is, the sum total of capital appreciation of SOEs and the contribution to the social benefits. Therefore, differences are inevitable between SOEs and the enterprises of other ownership in terms of the driving factors of the investment behavior. The thesis analyzes the influences on SOEs’ investment behavior from three levels:macro-environment, enterprise and decision-makers. Finally, on the background of government-governing mode, the thesis develops an integrated theoretical framework incorporating five controllable factors corporate governance, financing constraints, investment opportunities,manager’s personality and manager’s psychology to examine the interaction among these factors. By using this framework, the thesis seeks to find and show the impact and mechanisms of the factors on the investment behavior of SOEs.The thesis finds that investment is a comprehensive process and the inefficient investment of SOEs is an objective phenomenon. First of all,the government involves in the investment with dual status of country social manager and the investor of SOEs. The greater the proportion of state-owned share, the greater the influence of the government can be.In addition to direct impact on the investment behavior through the governance structure of SOEs, the proportion of state-owned share will change the attitude of managers, who would be increasingly cautious about investment. Secondly, financing constraint, especially interest obligation constraint, is the most important factor on SOE’s investment scale. Fund shortages will restraint the investment of state-ownedenterprises, leading to inefficient investment. Thirdly, personality and psychology of managers will affect the SOE inefficient investment directly or indirectly. Fourthly, for SOEs, the scale of enterprise and investment outweighs the profit during the progress of making an investment decision. Fifthly, incentive and restraining mechanism is an important and efficient policy. Sharing the risk and profit and combining the individual interest with performance of enterprises could to some extent reduce the negative influence of state-owned asset management system,...
Keywords/Search Tags:SOEs, Investment behavior, Government involvement, Corporate Governance, Behavioral finance
PDF Full Text Request
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