The Time Effects And Endogenous Research Of The Value Of Listed Companies In China

The company value is one of the most important concepts of modern finance theory. As adifferentiate basis of the core of company's financial decision-making, it is used to measurecorporate ability to give returns of its stakeholders. Besides, Maximize the value of company hasbecome the ultimate goal of company's operation. The typical facts of financial markets andexisting research findings have proven that company value has dynamic features, while the impactof investment decisions, capital structure and dividend policy changes constitute a reason for thechange of company value, the changes is in the value of exogenous characteristics. Obviously, theexisting research doesn't involve whether the company value change over time can be providedwith endogenous law. Theory on the variation of company value change over time mostly isconsisted of corporate life cycle theory; it describes the value of a single company from scratch,and then began to decline from the peak until the demise of the entire change process. And thatany impact on the company's future cash flow and discount rate factors will have influence oncompany value. The life cycle theory is to discuss company in various stages of development,external differences including its scale, production efficiency and financing choices limitation willbe caused by the value of their own time-varying law, or emphasize the dynamic change ofcompany value is from exogenous shocks, it didn't refer to company in a particular stage ofdevelopment, or the endogenous time-varying problem of company value is relatively stable inexternal environment.In this paper, on the basis of scholars'research on company value intension, source andimpact factors in this field, with the financial econometrics empirical method using the data ofChinese securities market, to do empirical test on listing corporation after issued and also to findthe general law of how its value to change over time. In addition, to examine whether the changesin value of company have time effects, and based on the factors that impact on company's valuemost, including discount rate, capital structure, bankruptcy risk and principal-agent costs, to doempirical test on whether these factors have law of changes over time. Then to explain the valueof the company time effects of endogenous reasons. On the basis of the results of preliminarystudies, it is believed that the exogenous shocks is not the absolute reason for the value of listed companies change over time, the value of listed companies may have"endogenous bending"time-varying characteristics.The specific train of though in this paper are: First, establish the empirical research model ofthe time effects of company value, using China's securities market data-base to do empirical testof general law of the value of listed companies change over time. And to test the listed companyvalues in different IPO years , as well as company value time-varying characteristics of differentmarket cycle length respectively, so as to examine"whether"the value of listed companies havetime effects and"how"the value of listed companies change over time; Secondly, taking intoaccount that the full amount of sample model is the premise of whether the statistical inference iscorrect or not, in this paper, it selects a sample of only 314 listed companies from 2001 to 2007,the overall number of samples, especially in the last few years, there are much less sampleamounts, so the statistical inference results obtained may not be able to accurately describe thecharacteristics of samples as a whole. Therefore, in order to overcome the sample scarcityproblem, we use a return into the re-sampling statistical method to retest time effects of the listedcompany value. Again, do empirical study of listed companies'changes in the value of some mostimportant factors- discount rate, capital structure, and bankruptcy risk and principle-agent costs,to research on characteristics of the changes of these factors over time. Further, to analyze theendogenous reasons of listed companies'time-value effects, that is, to answer"why"listedcompanies have endogenous time effects. Clearly, the financial indicators are not only importantfactors that affect the changes in the value of listed companies, but also portray the operationcourses and direct results of listed companies. Selecting the appropriate financial indicators tomeasure above factors and test the time effects respectively can further explain the endogenousreasons for the changes over time of listed company values.The study included that: exogenous shocks are not overall reasons for changes over time oflisted company values, and time-varying characteristics of the value of listed companies showed atypical U-shaped curve, moreover, it has robust empirical results. It proves that the value of listedcompanies does have time effects, that is, as time goes by, it first increases then decreases.Empirical results based on financial information which is related to the influencing factors of thevalue of listed companies, listed companies'discount rate, bankruptcy risk, capital structure andother factors together constitute the endogenous causes of why the value of listed companieschange over time showed a typical U-shaped curve. The changes over time of principle-agent costs of listed companies based on the stochastic frontier model measure, showing a monotoniclinear feature. This is different from the value of listed companies change over time, whichdemonstrates a typical U-shaped curve. It describes that the time-varying characteristics of listedcompanies'principle-agent problem is the endogenous influence factor of the value of listedcompanies'time-varying, but it is only the reason for why the listed companies'value are declineaccordingly as time goes by.In short, consider the listed companies are generally in a particular stage of corporate lifecycle, the external environment (such as financing costs, regulatory environment, etc) it faces arebasically stable, in this paper, it selects the listed companies of China's securities market as theresearch subjects, empirical research time effects of the value of listed companies and itsendogenous characteristics. Therefore, it provides a new perspective and empirical data-base tosupport the follow-up of scientific research on the influencing factors of corporate value.