Research On Impacts Of RMB Exchange Rate Volatility On Plant Level Investment

Since 2005, the RMB exchange rate mechanism reform started, the trajectory of the RMB exchange rate showed remarkable fluctuations. As of the end of March 2016, when the nominal exchange rate and real effective exchange rate of the RMB exchange reform distance has appreciated 35% and 39.7%. RMB exchange rate changes to export enterprises, will come to affect corporate profits in many ways cost channel, price channels, and ultimately affect the investment scale enterprises. Business investment is not only necessary means for their own survival and development, is an important way to reduce risk, but also to explain the long-term growth and short-term fluctuations of the Chinese economy are essential. In an increasingly far-reaching effects of the global economic integration of the moment, more frequent exchange rate fluctuations, increasing margins, exchange rate fluctuations affect research on investment is very important.In this paper, the theoretical and empirical combination of the two methods, choice of manufacturing export enterprises listed company as the research object to study the impact of exchange rate fluctuations on investments. Firstly, to summarize the relevant literatures, and on this basis the impact of exchange rate fluctuations on investments theoretical model based on empirical research. Empirical part is divided into three steps:First, manufacturing exports to 383 listed companies as a sample, using the system GMM to analyze the impact of RMB real effective exchange rate of fixed assets investment of the whole sample and add cost-plus, cross-variable export ratio Secondly, according to the size and the size of the cost-plus enterprise-scale enterprises will be the overall sample packets regression comparison, the final effluent to represent an alternative investment in fixed assets investment in the level of corporate cash in investing activities, the overall robustness of the test sample.Improve the RMB exchange rate fluctuations have a real investment in China’s manufacturing export enterprises significantly negative effect, this negative effect will increase as the cost-plus or expansion of business scale enterprises weakened, export: the full text of the conclusions obtained by analyzing income ratio will not increase significantly expand this negative effect, which filled the gap in this field of study in theory. Finally, further proposals from both business and government level, in a real sense for the government to improve the correctness of policy development, operation and development of corporate business strategy to upgrade, there are certain guiding significance.