An Analysis On The Impact Of Financing Structure On Investment Behavior Of Food And Beverage Listed Companies In China

Financing and investment are two aspects of the most important activities ofcompany finance. In the recent years, more and more scholars overseas or in China payattention on investment and financing of companies. There are quite a number ofresearch experiences overseas on this topic. As the capital market and companies inChina are different from the West, the research on financing structure and investmentbehavior of our country is necessary. The research on financing structure and investmentbehavior has begun in the recent years, however, there is no relative research on food andbeverage industry. Therefore, it makes this paper more meaningful both on academic andrealistic terms.This paper, in the first place, analyses the relationship between financing structuresand investment behavior in theoretical way. It clarifies the definition of financingstructure and investment behavior before the analysis. Then begin the theoretical analysisby irrelevance theory of financing structure and investment behavior, relevance theory ofinvestment structure and investment behavior, underinvestment from debt, andinvestment structure strategy hypothesis. After that, this paper gives an overall view ofthe current situation of financing structure and investment behavior of listed companiesin China, and then descripts the current situation of financing structure and investmentbehavior of food and beverage companies respectively.This paper selects forty-four food and beverage listed companies from2006to2010as its samples of the panel data. It makes investment expenses as independent variable,makes debt to asset ratio as dependent variable and makes major activities, internal cashflow, Tobin’s Q as controlled variables, and processes an empirical analysis on the impactof financing structures on investment behavior. This paper analyses by groups by dividesthe samples by growth opportunities of the company, scale of the company and theownership concentration of the company.The last but not the least, a research conclusion is given including conclusion byintegral research and conclusion by grouping research. After the conclusion, this papergives out recommendations on optimizing the financing structure of the listed companiesand improving the investment behavior of the listed companies.