Investment Patterns And Corporate Value Relationship Empirical Research

This dissertation focuses on the relationship between the investment mode and corporate value from the view of the investment of corporate finance, based on the facts that value-focusing investment is acting as the mainstream in current securities investment, and discovering value-creating corporations as investment objectives is being attached great concerns to by investors.On the principle that investment directions are determined by the corporate product strategy, corporate investment modes can be classified by the centralization of product categories, the data of which can be obtained from corporate financial statements. According to this perspective, corporate investment modes can be sorted into 4 types as the following: investment mode single product, dominant product investment mode, relative diversification investment mode, and irrelative diversification investment mode. It is argued that dominant product investment mode is most favorable to the construction of corporate competence, which supports the sustained growth of corporate value. From the aspect of corporate investments, the corporate value comprises two sections: one is current value, produced by past investments and measured by healthy financial indexes, and the other is future value, produced by current investments and measured by growing financial indexes. In this paper, a quantitative model of financial indexes is constructed to assess the corporate value of China's listed companies and is applied in the empirical research on the relationship between the investment mode and the corporate value. The research demonstrates that a noticeable regression doesn't exit between the listed companies' value and the centralization of investment mode, which is primarily caused by China's special institutional environment. However, only in a specific period and condition, can this environment make diversification apt toboost corporate value. In the long term run, the investment mode of high centralization lies as foundation of the corporate value, which is forcefully illustrated by the case study of Uniscan Ltd..