On Financial Behavior Of State-owned Listed Companies

Financial resources is one of the most basic resources in the enterprise. As aday-to-day work,it is also an important part of financial management. With thedeepening of market-oriented reform of state-owned central enterprises, EnterpriseIntegration will be the future direction of development of the state-owned enterprises,and thus the quality of the daily financial behavior has far-reaching significance forthe sustainable development of enterprises.Financial behavior, including a variety ofelements, is limited to investment, financing, dividend distribution behavior. Thearticle will analyze the state-owned listed company investment, financing, dividenddistribution problem, to analyze how to achieve sustainable development ofenterprises and maximization of enterprise value through decision-making.The article is divided into seven parts.The first part is about the background of the article, the significance of the topic,research paths and methods. I consider this subject is in line with the current hottopic, with a certain practical significance. Western literature studies were focusedon the company’s financial behavior through the empirical analysis of data. Domesticresearch were normative analysis, and not much research on state-owned enterprises.The second part summarizes the theory and economics basis of financialgovernance and financial behavior. I compare and research the financial governance,financial management and financial behavior. I think that financial behavior is amicro concept, the specific financial governance.The third part consists of three perspectives, the strategic perspective ofstate-owned enterprise groups, perspective of financial governance of listedcompanies and perspective of corporate improvement. I illustrate the importance ofthe financial behavior of listed companies of state-owned. I believe that the qualityof financial behavior affects the size of the financial risk.The fourth part describes the institutional environment of state-owned listed companies, including government background, internal control, the absence ofeffective supervision. I select600state-owned listed companies between2005and2010. Then I find that the state-owned enterprises have a strong investmentstrength,large-scale investment,but also blind investment. They have financingpreferences, but are less concerned about the risks of financing, financing utilization.Besides, they have strong dividend capacity, but the profit-sharing ratio is not high.The fifth part definites the ability of sustainable development of enterprises asthe interpreted variables, the ability to invest, financing capability, and the dividenddistribution behavior as the explanatory variable. Besides, I select ROE,LIOS,TDR,CASHDIV as indicators. Then I establish Variable Intercept Fixed Effect Model onthe base of2005-2010data of the selected600state-owned listed companies. Theempirical results show that there is no significant impact between the size of theinvestment and sustainable development of enterprises. There is a correlation amongFinancing policy, dividend policy and enterprise development.The sixth part describes the three goals of the state-owned listed companies’financial behavior--profit maximization, the maximization of shareholder wealthand the maximization of enterprise value. I propose that the goal of the state-ownedlisted company is to insist the principle that maximize the interests of"stakeholders".The company should be concerned about the economic efficiency ofenterprises and social benefits. Last, I propose series of advice about investment,financing, and dividend distribution.The seventh part summarizes the article conclusions and limitations of the study,and outlook the topic of prospect.