Research On Investment Behavior And Efficiency Of Listed Companies In Hebei Province

In modern companies’ management，company faces uncertainty and various riskswhich may lead to investment failure when it makes finance decisions. Hence, company’sinvestment behavior and efficiency has become most scholars’ research issue. Thecompany’s investment efficiency is not only the reflect of company’s capital allocationability but also the key point of company’s existence and development in the marketeconomy. How to enhance company’s investment efficiency and economy’s rapiddevelopment has become scholars’ most caring subject. But until now, research papersaiming at listed companies’ investment behavior and efficiency are relatively lack. Thispaper which researches on Hebei province’s listed companies’ investment behavior andefficiency contains practical meanings.By referring to documents of domestic and overseas listed companies’ investmentbehavior and efficiency, this paper adopts those listed companies started from2007to2011in Hebei province as research subjects. With quantitative analysis, this paper does empiricalstudy on the effects on Heibei province listed companies’ investment behavior andefficiency from four aspects of capital structure, ownership structure, property charactersand product markets. What has been researched in this pare is mainly focused on followingpoints:By collecting and tiding Hebei province listed companies’ basic data, analyzing thedata characters of Hebei province listed companies’ investment outlays and investmentefficiency with mathematical statistics, this paper lays foundations on regression analysis.The regression analysis on the factors which effect Hebei listed companies’ investmentbehavior and investment efficiency shows that companies’ investment outlay has positivecorrelation with financing level while has negative correlation with circulating shares ratio,state share holding ratio, working capital, operational risk and agent cost. In investment efficiency aspect, what lay most influence on investment efficiency is circulating share ratioand working capital. Business risk’s enhancement will lay negative effect on companies’growing ability. The report forms researching on companies’ investment efficiency showthat equity financing, internal financing, share ratio of the largest shareholder and stateshare holding ratio has positive correlation with assets profit margins. While state shareholding ratio has non positive correlation with net assets income rate and operating profitratio.Aiming at improving Hebei province listed companies’ investment efficiency, thispaper raises some suggestions from internal and external causes. First way is upgradinglisted companies’ internal governance mechanism, mainly including weakening strongstock holders’ control on listed companies, perfecting board of director’s function andlaying effective supervision and inspiration on managers. Second way is improvinginformation disclosure requirement of capital market and perfecting the supervision systemof capital market.