Research On The Over-investment Behavior Of The Coal Listed Companies

Investment is one of the core issues of financial problems of enterprises.As abasic activity of enterprises; it not only affects corporeity’s financing activities but alsodetermines the efficiency of corporate investment which affects its other stakeholders.Study of the investment behavior problems is the eternal theme of the study ofcorporate financial problems. With the development of China’s economy, the investmentof corporate also shows a booming trend. However, because of the exit of the macroand micro reasons, China’s enterprises are also emerging in the phenomenon ofunderinvestment or over-investment. To some extent， over-investment behavior ismuch more serious. First, corporeity’s over-investment behavior derives from thechasing of high interest in the market, and second is the company’s own investmentmanagement mechanism is not perfect.This paper analyzes the listed companies in China’s coal industry and explainswhich investment behavior is not reasonable. Also, it studies the factors affectinvestment behavior and indicates the necessary of building control mechanism. Thearticle first introduces the research background and topics based on the researchpurpose and meaning. Second, it points out that the definition of excessive investment,combineding with the theory of over-investment analysis. Again, on the basis oftheoretical analysis of the previous sections, it puts out that the existence of coal listedcompanies over-investment behavior and its related important influencing factors.Then, throughing the establishment of a mathematical model and using descriptivestatistics and multivariate linear regression analysis, the relevant data empiricalanalysis and hypothesis testing, derived factors important effect on the coal industrylisted company investment behaviors at the end of the article, it puts forward areasonable police to curb over-investment behavior so that it can improve theinvestment value of the coal listed companies. Finally, it summarizes the mainconclusions of this paper and pointes out the inadequacies of the paper. At the sametime, it also points out the directions of the future research for this paper.