Analysis On The Impact Of Equity Finance On The Investment Efficiency Of The Listed Companies

The issue of financing and investment is the hot topic of the economists'research in recent decades.In the management of listed companies, investment efficiency is a very important issue. But in recent years, there is a strong preference for equity financing in listed companies.Special equity systems, backwardness of supervising measures and so on make that the listed companies'pose a low efficiency in using funds that collected through equity refinancing, and a common problem that the performance go down after financing.Consider the current preference for equity financing and investment efficiency, it is necessary to analyze the interaction of ownership finance and investment decision,it could provide theoretical basis for estimating the enterprise's equity finance behavior and enhancing investment efficiency.With the western listed companies'data and Combining the unique market environment and the economic system of our country, the relationship of equity finance and investment efficiency is studied in this thesis.The whole research consists of three parts: First, Based on economic theory and ideology, statistical methods is applied to precede its analysis. This paper analyses the reasons of preference for equity financing and inefficient investment of listed companies. Second, This paper analyzed influencing factors of equity financing for the investment efficiency, proposed that the analytical framework of the influence of equity finance on investment efficiency, and regression model is built in accordance with variables analysis. Third, Empirical analysis is made for the above model and the influence of equity finance on investment efficiency is systematically analyzed. This thesis analyzes the influence of the different factors in equity financing on corporate investment efficiency according to regression results and Verify the hypothesis which in the preceding paragraphs proposed.The results show that: (1) Based on Free-cash flow hypothesis, the influence of equity finance on investment efficiency through internal cash flow, there is a more significant positive correlation between investment and cash flow of listed companies in western China, Sample enterprises in western China investment decision may be based on the level of its cash-flow to carry on investment behavior of inefficient.(2)Based on Managerial opportunism theory, Sample enterprises'behavior of inefficient investment reveals over-investment as with most studies.(3)Through corporate ownership structure and Ownership Concentration variables to test samples, this thesis found that the state-owned corporation stocks and the Proportion of the largest shareholder have a major impact on investment decisions, the variables of state-owned corporation stocks and Proportion of the largest shareholder turned out to be highly stimulative to the investment behavior of inefficient. this thesis didn't find there is relationship between ownership concentration and the investment variables,the specific relations to be further in-depth study.