The Transformation Of Economic Development Mode And The Choice Of Corporate Financial Behavior

It attracts worldwide attention that the development of China Economics increased10%annually in recent30years under the reform and opening policy and the amount of economics ranks second now. Meanwhile, not only the American financial crisis and European Sovereign Debt Crisis affect the global economics (including China), but also the development of China economics faces several issues. The internal factor has a big potential threaten to China continuous development of economics in future. It includes:with the expansion of China economics amount, the scarcity structure of economics element has a significant change:the shortage of plant, minerals and water etc. increased more, the effects that the source environment restriction to economic development improved more. The change of the supply-demand relation in production elements require the adjustment of the power, structure, quality, efficiency, employment, distribution, consumption and environment etc., as well as the transformation of the survive and development way for the corporates to adapt the new change. It makes the corporates accordingly set the new position in the utilization of resources, the consumption of energy, the cost of human resource, the innovation of technology, the exploration of mark.All of these changes belong to the transformation of economic development mode. However, there are several papers study the transformation of economic development mode in macroeconomics but a few of them discuss the choice of corporate financial behavior under the transformation of economic development mode. This paper try to study the logic between the transformation of economic development mode and the choice of corporate financial behavior, discuss the adjustment and change of such behavior choice, analyze the effects of the corporate financial behavior under the transformation of economic development mode, and finally give some suggestions for policy.Beside the introduction, this Paper is made up of five parts. The main contents are as follows:Part1:Literature Review. This part reviews systematically the related papers about the transformation of economic development mode and corporate financial behavior, make comments on the existing research, and point out the shortcoming of the existing papers.Part2:The effects of the transformation of economic development mode on the choice of corporate financial behavior. This part discusses the influence factors, interest conflicts and change path related to the Transformation of Economic Development Mode and the choice of corporate financial behavior. In detail, the value choice, risk-profit, and social responsibility in the corporate financial behavior are studied. This part analyzes the internal and external variables which impact on the choice of corporate financial behavior, discusses the relationship between the choice of corporate financial behavior and the transformation of economic development mode, studies the effects of change of core value on the financial idea and financial policy, and specify the position of corporate financial policy and social responsibilities in the transformation of economic development mode.Part3:The way of corporate financial behavior:Descriptive analysis. This part uses the methods of descriptive statistical analysis to discuss the characteristics of the choice of corporate financial behavior in China by different industries. The corporate financing behavior is mainly analyzed by the rate of assets to liabilities and related financial indicators. For the corporate investment behavior, the main issue is still the insufficiency of investments.Part4:The choice of corporate financial behavior:The empirical analysis. This part uses the optimal capital structure and optimal investment model to analyze the macroeconomic factors impact on corporate investment and financing behavior. The result indicates that the economic cycle generally significantly effect on these firms, and the effects of currency supply, taxation and interests are all related to the industry. The Loan amount has the lowest power of explanation.Part5:Conclusions and suggestion. This part summarizes the main conclusions, provides some policy suggestion, summarizes the contribution and limitation, and gives some suggestion for further research.The main contributions of this paper are as follows: Firstly, the existing studies in corporate finance mainly based on the microscopic perspective and the traditional analysis framework. Although there is some analysis considered the macroeconomic environment, most of them are just on the theory level. This paper focuses on’the macro-economic environment’and ’corporate financial behavior’to find their relations. It studies the choice of corporate financial behavioral under the transformation of economic development mode, and discuss the financial behavior, value orientation and characteristic, about them. This study provides new views for further study.Second, from the research design, this paper constructs a dynamic study of corporate financial behavior based on macroeconomic factors of the investment and financing model, and finds the main macroeconomic indicators of corporate financial behavior. Meanwhile, the model constructed in this paper based on the macro level and micro level factors, using a dynamic panel data model to estimate. So this study consider not only the direct influence of macro-economic policy factors on corporate financing behavior, but also the indirect influence on the change of investment and financing behavior rate. Especially, this paper introduces the industry factor in to the model to reveal the characteristics of the capital structure and investment inefficiency.Third, this paper presents some policy suggestions:(1) In current background, macroeconomic factors determines not only the external supply of capital, but also the value orientation of the financial impact behavior and default risk.(2) the key to change the mode of economic development is to use different choice of corporate finance behavior for different firms.(3) The core of the transformation of economic development mode is to continuously enhance the company meet the requirement of market economy development innovation ability, not simply rely on tax cuts to transfer interest.The empirical analysis also found that:(1) the assets to liabilities rate has Procyclical characters.(2) Monetary policy has a greater impact in several industries, such as the mining sector in the secondary industry.