An Empirical Research On The Relationship Betweenfinancial Structure And Investment Behaviors Of China's Listed Companies

Fund-raising and the use of the raised funds are the two core elements in modern corporate financial activities. How to mobilize sufficient funds for the investment activities of enterprises is a question that need considering in financial decision-making, but how to use the raised funds effectively is the problem to be solved in business investment decisions. Thus, in the background that the investment efficiency of China's listed enterprises needs to be improved, to study the relation between the financial structure and investment behaviors has both theoretical and practical significance.Based on the study of the research documents of home and abroad, this thesis selects listed companies of auto industry that had already got listed in Shanghai stock exchange before December 31, 2004 as a sample, uses multiple linear regression analysis method, in the role of a variety of variables, to analyze respectively the relation between the financial structure and investment behaviors of auto industry listed companies, and in this thesis, we divide financial structure into current liabilities and long-term liabilities ratios, also we divide investment into physical investment and equity investment. Regression results show that in different types of investment, the relation between financial structure and investment behaviors is different. Ratio of current liabilities and long-term debt is a significant negative correlation of the physical investment; current liabilities ratio has no significant effect to the equity investment, but long-term debt has a significantly negative correlation with equity investment. According to the statistical data, in the year of 2008, China's auto industry as a whole is under-investment and financial structure constraint the investment of listed companies in the automotive industry.According to research findings, from the present situation of financial constraints, this thesis recommends several policies, including improving the quantity of profits, improving the protection of creditors of the environment, strengthening the governance mechanism for creditors, increasing the responsibility of shareholders and construct a reasonable financial structure, as well as perfect the incentive mechanism for the management to promote China's auto industry develop much better.