The Stock Market Irrational Bubble And Listed Companies Investment

This paper mainly studies the relationship between the stock market valuation and investment of the listed companies from the bubble angle of view. In our country stock market, the phenomenon of the split share structure of listed companies long-standing, even in the current share structure reform has been implemented today, there are still many listed companies, there is also a large number of corporate shares and other non-tradable shares. The existence of such a stake, so that the traditional calculation of the value of Tobin's Q There is a certain bias can not be a normal reaction to the irrational stock market price bubble, so that based on the value of Tobin's Q and the relationship between the companies to invest in a lack of a certain degree of scientific.Combined with the actual situation of China's stock market, this paper defined the concept of the bubble degree as the stock market irrational bubbles, establish a direct test to verify the relationship between the bubble degree and listed companies investment through regression model based on Polk and Sapienza(2002). Add Tobin Q and cash flow variable to the model, examining the interaction between these variables effects, and contrast sensitivity of their investment. According to the model, using the listed company's actual data in the manufacturing industry of 2007 which have stock-market bubble, take the cross-sectional data window from 2006to 2007, empirical tests of stock market bubbles and irrational investment behavior of listed companies.The first chapter describes the relevant topics of the background, pointing out the theoretical and practical significance of the relationship research between irrational stock market bubble and invest with the right listed companies, in the situation of financial and real estate bubble in 2007. the same time, with a number of topics of related literaturc to review and propose ideas of this research, methodology, framework and possible innovation points.ChapterⅡfrom the stock market and invest of listed companies, respectively, focuses on the efficient market hypothesis, Tobin's Q value theory, behavioral finance theory and corporate investment, to describes the theoretical basis.between the investment of the listed company and non-rational price bubble.The third chapter mainly from the perspective of the bubble, to explore the irrational stock market bubbles and investment relationship. First of all analysis the relationship of listed companies on the stock market valuation and investment, and then define the degree of market price bubbles, introduced the measurement of bubble degree and finally discuss the inspection and listed companies to invest in the bubble degree of relationship models.Content of Chapter IV is established the model in the bubble degree of relationship with the listed companies to invest based on the use of the manufacturing sector in 2007 listed the company's actual data, empirical regression and analysis of the results. As the bubble degree and the adjusted value of Tobin's Q of listed companies to invest in was not sensitive, so to further discuss the possible factors that affect investment in listed companies, investment in listed companies are given some suggestions.Finally, given article conclusion, noting that investment in stock market listed companies was not sensitive to the irrational bubbles, adjusted value of Tobin's Q with the bubble degree B is not strong in the company's investment explanatory power. Which can be seen in our country, affecting investment in listed companies by many factors, financing channels, ownership structure, assets, properties, product markets, insider control, national policies are likely to have an impact on the company's investment.