Research On Influencing Factors Of Investment Expenditure Of Agricultural Listed Companies

The purpose of corporate investment expenditure is to achieve the prospect profitability, and finally to maximize the corporate value. However, the investment expenditure of agricultural listed companies is seriously destroyed to some extent because of faultiness of capital market environment and request proxy problems. It shows the low investment efficiency of investment shortage, over-investment, frequently alteration of collecting capital directions, constrains the development of agricultural listed companies. The relevant research on corporate investment expenditure is abundant, whilst the scholars lack of the research on multi-factor influencing investment expenditure instead of single factor. Based on the characteristics of corporate ownership structure of agricultural listed companies in Chinese transition period, this paper chooses the relative theories of investment and financing as the research foundation, build Structural Equation Modeling of ownership structure, financing structure, financing constrains and investment expenditure, explore the naked theoretical hypothesis, identify the explicit and implicit relations among influencing factors of investment expenditure, and offer new research paradigm and empirical approaches to study the corporate investment expenditure.Based on studying Agency Theory and Interactive Mechanism Theory between Investment and Financing, combining Normative Analysis and Empirical Analysis, implementing some qualitative approaches, like Factor Analysis, Structural Equation Modeling, Parametric and Nonparametric Tests, this paper successfully analyses the characteristics and influencing factors of investment expenditure of agricultural listed companies. In addition, Structural Equation Modeling of ownership structure and investment expenditure, financing structure, financing constrains and investment expenditure is built to illustrate the theoretical variables of corporate investing behavior, to identify the explicit and implicit relations among influencing factors of that, and to offer policy recommendations from influencing factors of governance efficiency of ownership structure and optimization of financing structure perspectives.After a complete , conclusions are as follows:(1) The level of investment expenditure of agricultural listed companies is positively related to the centralization of stock right. Under the control of large shareholder, the level of investment expenditure is relatively high; The level of investment expenditure is positively related to corporate scale. The larger the corporate scale, the higher the level of investment expenditure; The level of investment expenditure is positively related to corporate growth. The higher the corporate growth, the higher the level of investment expenditure; The level of investment expenditure is not related to the sub-industry the enterprise in.(2) The investment expenditure is positively related to the scale of equity financing. The Larger scale of equity financing under the large shareholder control, the investment behavior of Chinese agricultural listed companies under the insider person control is inclined to expand the scale. The equity financing is significantly positive related to investment expenditure. After the shareholding separation revolution, the ownership percentage of largest shareholding is decreased, the percentage of management shareholding and tradable shareholding is increased, and the scale of investment is declined. Shareholding balance could regularize corporate investing behavior, decrease the investment risks and upgrade the efficiency of capital allocation to some extent.(3) Two-way influence effects of investment expenditure and sensitivity of cash flow. Cash flow is the exogenous variable of investment expenditure, as well as the endogenous variable of financing structure. On the one side, the higher the level of cash flow, the larger the expenditure scale; on the other side, the larger the expenditure scale, the lower the level of cash flow.The innovations of this research are:(1) To build Structural Equation Modeling of ownership structure and investment expenditure, financing structure, financing constrains and investment expenditure; to verify the hypothesis of two-way influence effects of investment expenditure and sensitivity of cash flow; to identify the explicit and implicit relations among influencing factors of investment expenditure of agricultural listed companies; to offer the research paradigm of multi-factor influencing mechanism instead of single factor.(2) To structure and validate the theoretical variables of ownership structure, financing structure, financing constrains and investment expenditure; to reduce the errors leading to the disagreement of the conclusions, while upgrades the research accuracy.(3)Before and after the shareholding separation revolution, there is significantly difference of investment expenditure under the large shareholder control. After the shareholding separation revolution, the level of investment expenditure is declined. Shareholding balance could decrease the scale expanse of investment expenditure to some extent.