A Study On The Effect Of Ownership Structure On The Investment Behavior Of Listed Companies

Investment decision is one of the most important financial decisions in enterprises，because itis related to the survival and development of the enterprise. Investing activities influence thefuture cash inflows of the company,so investment behavior is effective or not,will directlyaffect the value of a company. Scholars studied the the investment behavior of listedcompanies in our country, they found that there are inefficient investment behavior in listedcompanies,and inefficient investment will reduce the value of the company.So study theinvestment behavior of companies is necessary and important. Equity structure is one of themost important factors that affect the corporate governance,undoubtedly, it will affect thecompany’s investment behavior, so this paper will study investment behavior of thecompanies from the aspects of ownership structure.This paper selects the data of manufacturing listed companies which listed in Shenzhen andShanghai Markets as the samples,and these date all from2009to2012.By using regressionanalysis method, firstly,this paper measured the efficiency of investment spending incompanies,and found that there were inefficient investment behavior in many companies,thecompanies which are controlled by Local government are more prone to excessiveinvestment, and private enterprises will appear more Insufficient investment.Next,this paperwill choose the efficiency of investment as the dependent variable and choose equitystructure as the independent variables to study the the effect of ownership structure on theinvestment efficiency. The results shows that: the first big shareholder have approximateinverted u-shaped relationship with over-investment. Although other big shareholders canthrough influence the first big shareholders to improve the efficiency of investment, but theeffect is not significant. Managements holds the stocks of company will ruduce theinefficient investment of company,but the effect is not significant, and this effect will moreobvious than state-owned companies in the private companies. This article does not get theevidence that the sharehold structure significantly affect the insufficient investment,maybeother factors can strongly affect insufficient investment such as asymmetric information andfinancing constraint.