Research On The Impact Of Investment Bubbles On The Performance Of Listed Companies

Daniel Gross(2008)reviewed the history of investment bubbles in the United States for more than 160 years.He found that the impact of the investment bubble on the economy has a two-sided effect,and the short-term negative impact on the economy was more prominent,but in the long term,the rapid accumulation of capital would will promote the technology,and to a certain extent,it will promote economic development.In the current economic situation,the negative impact of investment bubbles on economic development is more prominent,but in the long-term and materialist dialectical point of view,the investment bubble may have both positive and negative effects.Daniel Gross has explained that on the macro,is there a positive impact to listed companies? This paper chooses the data samples from the pharmaceutical manufacturing industry and automobile manufacturing industry.It analyzes the change process of listed companies in different industries and on one hand,we hope to explore the success of these enterprises,on the other hand we hope to establish the logic of decision when invest stocks.This paper introduces a ratio as capital output efficiency,which is used to measure the level of operation of capital.When there is investment bubble in the market,companies will increase capital investment,if they use the capital to increase their scale of R & D or step into the new industry may make the company's capital output curve to move upward.when the investment bubble burst,the capital Investment will come ack to the original level,but the company's capital output efficiency will not return to the original level,it will be substantial improvement.In order to verify whether there is an increase in the efficiency of capital gains after the investment bubble in China's stock market,we selected the return on net assets,the total assets yield and the operating net profit rate as the financial indicators to measure the efficiency of capital output.In the first,this paper finds out the year when bubble happened in China's stock market through the F-O model.In the second,we find out the time point of the turning point of the investment bubble as the benchmark point of the research,and then selects the qualified companies in the stock market.We want to confirm if the performance of the company after the base time has significantly improved.And if the performance of the company before The base time is similar to average performance of the industry and after the base time it is significantly better than the average performance of the industry.if the hypothesis has being confirmed,it can be considered that before the investment bubble the performance of these companies is mediocre,and after the investment bubble same companies perform better than the industry.The empirical results show that competitiveness of same companies has been improved,the performance is better than the industry.The impact is related to the changes in the macroeconomic environment during the investment bubble,the company's experience management philosophy,the company's capital operation,investment decision-making and behavior.