Chinese New Energy Equipment Manufacturing Enterprise Of Over-investment By

Global warming is already well known.in order to reduce the threat to humanity,all over the world are respectively adopted a series of corresponding measures.The new energy arises at the historic moment and then get very soon.Accordingly,new energy equipment manufacturing enterprises are also obtained the development opportunity and fully developed in the market.But after development too fast then appeared overcapacity.Related studies have shown that,this is caused by new energy equipment manufacturing enterprises excessive investment behavior.In order to solve the excess capacity phenomenon in the market,it is particularly important to study excessive investment of Chinese new energy equipment manufacturing enterprises.The paper analyzes the internal and external cause of new energy business over-investment.The paper studies the internal and external cause of new energy business over-investment from two different perspectives.First,from the perspective of the free cash flow theory,the paper analysis the internal cause by cash analysis then tests the result by SPSS software.Second,from the perspective of Rent-seeking theory,the paper analyzes the external cause of new energy business by Game analysis.This conclusion:new energy equipment manufacturing enterprises excessive investment internal cause is the pursuit of profit;the listing new energy equipment manufacturing enterprises excessive investment internal cause is the maximum cash flows,maximizing the controlling new energy interest groups seek"dividends,profits or interest payments in cash".External cause of new energy equipment manufacturing enterprises excessive investment is that the Local Government pursuit the maximized "GDP".The Local Government lured excessive investment in new energy business by land,financing,etc. For profit and self-interest,Bank loans to the new energy equipment manufacturing enterprises,while bank loans to the new energy business inhibit the over-investment.