The Nature Of Equity Of Listed Companies, Government Subsidies And Over - Investment

The thesis mainly focuses on the relationship between equity nature, government subsidies and over-investment of the listed company in China, attempting on searching for the influence of the different equity nature on getting the government subsidies of the companies as well as the whether the achievement of government subsidies is easy or not will contribute to the over-investment. Government subsidies represents the support from government,which is the one of the important methods of government to realize the policy targets. During the executing, on one hand, the government can adapt the cash flow of the listed company, which has some affection on the ability of the listed company. On the other hand, government also can make a plan through the financial methods for the issues such as economic development, local life condition and so on.With the increasing significant function of the environmental influence on the research on listed company, the development of a company can depart from the environment of the economy and policy, while the behavior of government is the key part of the research. In China, the environment the company facing to is special. First of all, the economy of our country is on the track of transition. Government, as the owner of many enterprises and the controller of the society, plays an important role in the resource allocation by financial support and policy guidance to make the government have the influence on the trend of the capital flow;In addition, government has the constitution of the financial policy and the control of the financial resource that strengthen the connection between government and enterprise further. Government subsidies make the enterprises get the monetary assets or non-monetary assets including financial allocation, financial discount, tax refund and free allocation of non-monetary asset. The government subsidies not only can enhance the income of the company, improve the ability of management and promote the interests in the future, but also can be the one of the routes of enhancing the capital or cash flow, which will make an influence on the behavior of investment of the company and contribute to the over-investment. The enterprises which get more subsidies from government may shoulder more responsibility of the government compared with the reducing of the nature of market to maximize the profits Moreover, getting the government subsidies easily will contribute to the laziness of the decision-making level to chase for a better plan of investment, expansion in a hurry and abuse of resource leading to inefficient over-investment in the end.With this background, the paper makes connection and analysis of the elements,such as equity nature, financial situation and management performance, of the listed companies, which devotes to the data in the database and the open information of the listed company as well as prove the research on the equity nature, government subsidies and the over-investment enriching the research in related areas.