Research On Correlation Between Safety Input And Company’s Market Value Of Listed Companies In High Risk Industry

The safety production of enterprise not only influences the sustainable and healthydevelopment of economy but also is the need of enterprise surviving in the increasinglyfierce competition. In contrast with the sustained and rapid economy development, thesafety production of enterprise in our country is not so good. Safety accidents haveoccurred frequently and major accidents have occurred over time. The safety issues ofthese high-risk industries,such as coal mine, non-coal mines, construction, hazardouschemicals should be given enough attention. At present, our government has staged a seriesof policies and regulations for safety issues of high-risk industries, but the situation ofsafety is still serious. Increasing safety investment is the important measure of improvingpresent situation in our country. But enterprises tend to maximizing economic benefitsunder market economy, so many enterprises avoid or reduce safety input in order to savecost. In order to solve this problem, the author of this paper takes security investment howto influence market value of enterprise as the starting point and studies the relationshipbetween the safety investment and the company’s market value, providing empiricalevidences for increasing safety investment and improving enterprises’ initiative andenthusiasm on safety investment.Based on the serious situation of safety production in our country as the researchbackground, this paper introduces previous studies about security investment, therelationship between social responsibility and the company’s market value both at homeand abroad, and then expounds the safety investment theory, social responsibility theory,decision usefulness view, signal transmission theory and enterprise value theory, whichlays a theoretical foundation for the follow-up study on correlation between safety inputand the market value of the company. On this basis, the author gathers data of high-riskindustry A-share listed corporations from2010to2012as the sample, and analyzes thesituation of China’s security investment, constructs the model to describe correlationbetween safety input and the market value of the company, measures safety input by theamount of extraction of special reserve in the financial statements, regards Tobin’s Q valueas alternative variable of corporate’s market value, makes descriptive statistical analysis and multiple regression analysis to sample and prove hypothesis proposed. Furthermore,according to the result of descriptive statistics analysis and multiple regression analysis,the author tries to discuss problems of safety input, reasons for this result, and puts forwardthe corresponding recommendations.