Research On The Relationship Between Equity Structure And Investment Behavior China's Listed Company

Enterprise investment behavior is one of the deciding factors, which decide value of future cash flows and business development prospects. However, because China's capital market is an emerging market, there are a lot of imperfections on the equity structure of listed companies, which leading to irrational investment enterprises and non-efficiency investments.In this paper, some listed companies in Shanghai and Shenzhen Stock Exchange were selected as samples, to do empirical analysis between the equity structure and corporate investment behavior, which showed that lots of listed companies under the control of shareholders did exist irrational investment. The higher degree of Ownership Concentration, the more significantly the model. In addition, there is an agency problem between management and shareholders to some extent.The paper gives a series of policy recommendations aimed at the actual situation of listed companies as well as the risks, including a continuing advance-tradable share reform, improve the governance structure of listed companies, and the establishment of a scientific motivation and mechanism.