The Research On Impact Of Investment On State-owned Listed Company’s Soft Budget Constraint

With the thorough development of China’s economy, China has entered a transition period toeconomic development. As an important force for economic development, the state-owned company asthe wave of economic restructuring in recent years, its development is also facing an important reform.The reform of China’s state-owned enterprises have embarked on market-oriented the demutualizationmode, the state-owned enterprises listed on China’s A-share market is also an increasing trend.Therefore, the types of state-owned listed companies involved in investment projects more and more,changing the amount of its capital, is also bound to affect the change of its funding, and foreigninvestment dynamic. In China, the government closely linked with the development of state-ownedlisted companies, there has been government intervention in the state-owned listed companies, therefore,it is necessary to build the connection between the state-owned listed companies’ soft budget constraintsand their investment behavior, to study the investment behavior of state-owned listed companieswhether exist excessive investment, to study the soft budget constraint whether play a role in bindingthe investment behavior of state-owned listed companies.In this paper, based on the analysis of the research literature, the basic theory of the soft budgetconstraint nature of state-owned listed companies and the investment behavior of listed companies, putthe soft budget constraint related variables into the relevant model empirical to analyzed. Finally,constructed the soft budget constraint nature of state-owned listed companies and their investmentbehavior research paradigm and analytical framework. This paper selects the2009-2011three-yearperiod of state-owned listed companies as the research object, respectively, to collect data for an annualstate-owned listed publicly observed sample, use of the EXCEL statistical software on selected samplesorganize, then use the application SPSS statistical software to regression analysis of data collected,improve the models, adding SBC related variables in the model for authentication. The empirical resultsshow that:（1） State-owned listed companies exist soft budget constraint nature and affect itsinvestment behavior, at the same time will lead to the emergence of over-investment in state-ownedlisted companies;（2）The level of bank liabilities of state-owned listed companies can play itsinvestment scale inhibition, but when the state-owned listed company’s debt level reaches a certain level,and this inhibition is not obvious;（3）Debt levels of local government control of the state-ownedlisted companies, their investment scale inhibition weaker than the central direct control of state-ownedlisted companies.Theoretical basis and on the basis of empirical research recommendations proceedfrom China’s actual situation and response measures, has profound theoretical and practical significance, provide constructive suggestions to further deepen the reform of China’s state-owned enterprises, andprovides a good reference for the investment strategy of the state-owned listed companies as well as itssustainable development.