| In recent years, China’s listed companies over-investment behavior isvery common,so the state-controlled holding manufacturing listedcompanies property, whether there is over-investment behavior?Therefore, this paper uses the method of combining theoretical analysisand empirical analysis of over-investment behavior of state-controlledmanufacturing listing corporation, in order to provide theoretical basisand empirical data support for the prevention of state-controlledmanufacturing listed companies over-investment behavior.Based on the research results at home and abroad with reference toexisting research of over-investment theory, according to thestate-controlled manufacturing listed companies,put forward threeresearch hypotheses. Select the general machinery manufacturing sectorin2008before the listing of the32state-controlled manufacturing listedcompanies as samples, with2009-2011years of financial data as thesample data for empirical analysis. The results show that:(1)Based on theRichardson (2006) the expected investment model, multiple linearregression model is established, the descriptive statistical analysis byresidual of regression, that state-controlled manufacturing listedcompanies exists over-investment behavior.(2)The correlation analysisand the state-controlled manufacturing listed companies over-investmentof free cash flow, a significant positive correlation between the two.Based on a linear regression model, regression analysis model to furtherprove the over-investment of free cash flow behavior has a significantpositive effect on state-controlled manufacturing listed companies.(3)Through descriptive statistics on bank debt analysis indicated thepresence of soft budget constraints of state-controlled manufacturinglisted companies, then to establish the over-investment as explained variable, free cash flow and debt×free cash flow cross terms asexplanatory variables, two regression models, through regression analysisof the model, that can not be over-investment bank debt due to the freecash flow play a role in corporate governance. And then combined withthe conclusion of the study, according to the "insider" abuse of free cashflow of over-investment behavior, and puts forward correspondingsuggestions. |
