Study On Influential Factors Of Over-investment Behavior Of Jiangsu Listed Company

In recent years, Chinese economy keep s a fleet rate of increase. And investment plays an important role in the development of Chinese economy. But because of the restrict of resource and consume demands, if the increasing of investment surpass some scope, "hot invest" phenomenon will appears, which cause over-investment Behavior. Because of excessive investment, a flood of capital Precipitates at some realms with excess production ability and poor profit ability. Excessive investment also reduces the ability of absorbing labor force in economy increase, resulting in waste of resources, and increasing financial risks, making difficulty in the coordination development of economy, environment and Society. Jiangsu province is a big economic and its economic growth is very rapid. In order to expand the size of the company or to pursuit of high profits, some listed companies vigorously expand investment scale, and even some companies which want to become bigger and stronger blind of the diversification under the impulse of expansion of investment to result the over-investment behavior in many well-listed company operating. So a study on over-investment is very meaningful.The paper synthesizes western scholar's latest investment theories, examines the relevant investment theories, analyzes some factors those maybe influence the over-investment, and put forward seven hypotheses about over-investment firstly. Then using the SPSS17.0 and EXCEL2003, take the listed company of Jiangsu province from 2007 to 2009 accounting reports data as example, make demonstration analysis according to investment model. Descriptive statistic and regression estimation lead conclusions as follows:(1)There is a degree of over-investment in the listed company of Jiangsu province among2007-2009;(2)When the free cash flow is ample, it is very easy to lead over-investment. Over-investment and cash flow are positive related; (3)Debt financing can effectively restrict the over-investment of shareholders; (4)The correlation between the short-term liabilities and the listed companies over-investment behavior is negative. The correlation between the long-term liabilities and the listed companies over-investment behavior is positive;(5)Concentration rate of shares and equity restriction ratio can not effectively restrict the over-investment of shareholders;(6)The size of company and Over-investment are negative related.Finally,the article concludes some policy proposals to inhibit the non-efficiency investment behavior of Chinese listed companies and it has the great research signification in guiding the listed company and the non listed company to do the investment decision more standardized and scientifically.