How Does Industry Level Information Predict The Capital Expenditure And Accrual Investment Of The Enterprise

How to predict micro corporate behavior through macro information and industry level information is one of the issues that external investors and financial analysts focus on.In different kind of corporate behaviors,investment is an important means for the enterprise to enhance their competitiveness in the industry and it have a wide range of impact on future profitability of enterprises.Therefore,this paper focuses on the how does historical growth rate of the GDP by Industry predict the investment behavior of the enterprise.The investment behavior includes not only the capital investment disclosed in the traditional sense,but also the working capital accruals.According to the real option theory to further study whether the historical growth rate of the GDP by Industry and the firm's investment behavior is affected by the volatility of the firm's own stock returns.This paper summarizes the existing research results and theoretical basis through the literature review,and develops the hypothesis and establishes the empirical model.We obtains the following conclusions by analyzing the empirical results: First,the historical growth rate of GDP by Industry and the enterprise Capital investment in the current year is a significant positive correlation;Second,the historical GDP by Industry and the working capital accruals of the enterprise in the current year is a significant positive correlation;Third,the volatility of corporate stock returns will weaken the positive correlation between historical growth rate of GDP by Industry and the working capital accruals of the enterprise in the current year.But the result is no significant on that he volatility of corporate stock returns will weaken the positive correlation between the historical growth rate of GDP by Industry and the capital investment of the enterprise in the current year.The results provide a reliable basis for external investors and industry analysts to anticipate investment behavior and predict their future profitability...