Research On Effect Of Investment Behavior On Corporate Competitive Advantage

The investment plays an important role in the process of economic growth. It is necessary to have a proper understanding of the firms' investment behavior, because Investment decisions are ultimately made at firms' level. Based on the data of Chinese manufacturing companies over the period 2003-2005 in Shanghai and Shenzhen stock exchanges, this paper chooses 1,870 examples to investigates the relationship between investment and corporate competitive advantage.Firstly, this paper reviews relative theories and researches. Secondly, fixed Assets Investment, Intangible Assets Investment and corporate competitive Advantage arc described statistically。Thirdly, this paper applies the method of cross-section linear regression to test this paper' hypotheses. Then, this paper studies the relationship among fixed Assets Investment, Intangible Assets Investment and corporate competitive Advantage. According to study, the main findings of this paper are as follows:(1) The research result shows that the last period fixed assets Investment is significantly positively correlated to current corporate competitive advantage. It is obvious that fixed assets Investment makes contribution to corporate competitive advantage.(2) This paper can not find that corporate competitive advantage is positively correlated to the last two periods' intangible assets Investment.(3) There is a significantly negative relation between intangible assets and corporate competitive advantage.(4) Corporate competitive advantage is positively correlated to cash flows and firms' scale, but it is negatively correlated to capital structure. Finally, This paper analyze the empirical results briefly, and offer some propositions to both business enterprise management and government economic policies.