The Empirical Study On Internal Factors Of Manufacturing Listed Company's Securities Investment In China

Affected by the reform of non-tradable shares in2005and the financial crisis in2008,the volatility of Chinese securities market is very large in recent years. Existing researchshows that the “wealth” of the securities market in our country attracted the listedcompanies which are originally as an investment object to actively participate in thesecurities investment. However, if they put many resources into the stock market will beharmful to the business operation and the development of listed companies, especiallyduring the period of the transition in Chinese manufacturing industry. In the absence oflong-term value investment projects if the firms excessively participate in risky securitiesinvestment not only against their own long-term development, but also effect on thestability of the securities market and the real economy. So the research on the securitiesinvestment behavior of the manufacturing listed companies whose business is prominent ismore meaningful.This paper defines the concept of securities investment firstly, and distinguishes theshort-term securities investment and total investment. The theoretical and empiricalstudies of listed company's securities investment are reviewed. Then the overall situationof the Chinese manufacturing listed company's securities investment is analyzed and itscharacteristics are summarized according to the relevant financial website and annualreport disclosure of listed companies. Finally empirical study on how Chinesemanufacturing listed company internal factor which include financial characteristics andmanagement structure affect the securities investment behavior. This paper also brieflyanalysis the impacts of external factors such as macroeconomic, industry development, butit argues that the study on the internal factors which the companies can control have morepractical significance.In the empirical part, the correlation analysis and multivariate linear regressionanalysis were carried out on the sample data by using SPSS software, and found that thenet increase in cash were affected the short-term securities investment and securities witha total investment of companies. In final part we compare the conclusion of thepredecessors' research to this article, and analysis how the internal factors affect thesecurities investment behavior of listed companies. The suggestions are made from anglesof the regulators, the listed company itself and investors.