The Influence Of City's Culture Environment On Investing Behavior Of Companies

Investment behavior of enterprises is a behavior that the enterprises invest their capital in a variety of assets in order to obtain the value of assets, which is one of the core areas of corporate finance. The objective of enterprises' investment is to maximize profits, so they have to invest their resources in the most efficient area, through this progress we could make sure the social resources been fully used and making the economy achieve sustainable development.Current researches about the managers' speculation are focused on the traditional finance area which is considering the influence of the financial status to the company's investment behavior. This kind of researches are influenced by the traditional rational man hypothesis, and ignore the decision makers' psychological factors, such as risk preference, behavior preference, which is also an essential factor that affects the manager's decision-making. The enterprise managers' decision making will depend on their sensibility, belief and sense of worth, which are strongly affected by the culture environments.In recent years, some scholars try to use regional culture which is an environment variable to analysis company's investment decision, so in theoretical area already reach a consensus of the relationship between the social culture environment and company's investment behavior, but they still not figure out the mechanism of the action. Presently, there are many researches already conducted on the investment behavior, there are relatively few empirical studies that consider the cross-level method.Considering the shortcomings of the previous studies. In this study, the micro-level departure from the enterprise, and to find microscopic evidence demonstrates the social and cultural environment for enterprise investment behavior, the use hierarchical linear model(HLM), the main business growth and other indicators included in the model, it is checked in different social and cultural environment elements of corporate investment mechanism. This is not only to gain insight into the social and cultural environment for enterprise investment behavior mechanism of action, but also to provide evidence on the microscopic to an existing macro research findings and to provide theoretical support to policy formulation. From a new perspective to our 50 cities listed companies empirical data analysis, research and cultural environment impact on corporate investment behavior.In this paper, the core proposition and research method of choice for cultural and social behavior of listed companies to invest in China's enterprises combined with the actual background precondition systematically sort out the related literature, combined with decision theory, social psychology and behavioral finance cross-impact studies to establish the basic theoretical research. According before combing the literature and related research selected entrepreneurship, innovation-driven, fair and multi-cultural tolerance in four cities metrics. 7 listed companies internal indicators index and regional cultural indicators established hierarchical linear model to empirical analysis.It was found that differences in urban culture environment can lead to investment behavior 16.45% of the difference, while four variables on the cultural environment of entrepreneurship, innovation-driven, fair and pluralistic tolerant not only have a direct impact on corporate investment behavior, but also business investment and net assets, operating margin, net profit margin of total assets, with a positive moderating effect between borrowing rates.