Empirical Research On Factors Influencing Fixed-assets Investment Scale Of China's Listed Companies

At this stage in China, the investment plays an important role in the process of rapid economic growth. It is necessary to have a proper understanding of the firms' investment behavior and find the factors that affect investment behavior from the microscopic level, because investment decisions are ultimately made at firms' level. First in the paper, there is a systematical review of the theoretical and empirical literatures on enterprises' investment inside and outside China, and then a summary will be made about what factors influence the investment level and how they do. From above we find that the factors impacting on the level of business investment can be included in the financial structure and governance structure, and the mechanisms about how they work can be explained by the agency theory. Then the paper describes the development of the principal-agent theory and Western investment theory as well as the production they achieved briefly, with an emphasis on the impact of financing structure and governance structure on the firms' investment decisions. In this paper, financing structure is defined to brace principle structure, debt structure and interior financing, while governance structure includes ownership structure, directorate structure, incentive mechanism .All those factors are relative to agent behavior and influential on investment decision through the agent behavior. Therefore we construct an intact theory system to analyze the mutual relations among financing, corporate government and investment behavior which are driven by the agent problem. Based on the theoretical analysis framework, the article selects the dates of the listed companies in Shanghai to analyze the pertinences between the various factors and the level of firms' fixed-asset investment empirically. From the empirical research, this paper finds: There was a significant negative relationship between investment and capital structure, as well as debt structure, while there was a positive relationship between investment and ownership structure, as well as interior financing; and the above conclusions were stable in general. The research also shows that the effective directorate structure and incentive mechanism can restrain the overinvestment made by proprietor. Finally, we analyze the empirical results briefly and offer some constructive propositions to both enterprise management from the micro level and government economic policies from the macro level aimed to resolve the problem of corporate government, financing and investment decisions existed in the listed companies of our country. The last part summarize the conclusion of the above every part, put forward myself view on the limitation of the thesis and direction studied further in the future.