Effect Of Ownership Structure Of Listed Companies On The Investment Behavior

Investment decision as the starting point of corporate financial decision-making, is one of the most important financial decisions facing businesses, involving the mobilization and allocation efficiency funds for operations and development of the enterprise has an irreplaceable role. Listed companies choose productive investment, can be converted into enterprise funds necessary for the reproduction of capital reserves, is conducive to long-term sustainable development of enterprises; when listed companies do financial investment, and the resulting benefits of the capital market is huge, but the long-term development good. Investment decision as the main drivers of business growth and cash flow is an important foundation for future growth because of how listed companies choose to invest funds into the production field or in the financial sector, are affecting the profitability of listed companies, its business risk and capital market development evaluation of prospects and results of operations.The role and efficiency of the ownership structure in corporate governance has always played an important issue in the field of corporate governance. The equity feature of listed companies is highly concentrated, diversified shareholding structure and the actual controller will have an impact on business investment decisions, it is to be an important issue for further research. Especially in recent years, with the full implementation of the split share reform, non-tradable shares and tradable shares in circulation from the separation towards the equity structure,this change of listed companies will inevitably bring new investment behavior impact. By studying the ownership structure of listed manufacturing companies, including ownership concentration, ownership structure, equity characteristics, in order to understand the different concentration of ownership, shareholding structure, the role played by the actual control in corporate governance and how it affects companies investment decisions.This paper describes that listed companies face changes in the external environment and internal survival ownership structure, review of the relevant literature in order to understand the basis of a detailed theoretical analysis. This article from the shareholding structure, concentration and control human nature to study these three dimensions equity firm. In the definition of investment behavior, the author made a new definition on the basis previous academic studies on investment behavior, the author difine the investment into productive investment and financial investment. Then, selecing 545 listed companies in the Shanghai and Shenzhen A-share listed companies and using 2007--2013 years of annual data among these companies.From the micro perspective,the author using multi-dimensional descriptive statistical analysis, directly reflects the ownership structure and investment behavior. In the empirical research, the paper using one-step system GMM, mixed OLS, fixed effects methods respectively, from the concentration of ownership, shareholding structure of two angles for productive investment, financial investment. Finally, through the regional grouping of listed companies structure and controller structure to test the robustness of the model.The basic conclusions of this study are as follows:(1) the largest shareholder,2-5 large shareholders and corporate managers have a strong incentive to increase the size of its stake and productive investment positively correlated. There is a large shareholder proxy issues listed company, the largest shareholder has expanded due to the selfish motive impulse productive investment, the major shareholder of the 2-5 largest shareholder behavior is to follow the effect produced. Management under the control of large shareholders play is management "Entrenchment" effect of productive investment behavior more seriously. (2) holders of tradable shares with institutional investors tend to invest in financial assets behavior, and show negative preference towords productive investment. Status and role of institutional investors in corporate governance became clear, holding motivation outstanding shares and institutional investors is capital gains in financial markets, making it prefers to invest in financial assets, to be able to bring enterprise-scale increase in production investment behavior is negative preference. (3) non-state-controlled listed companies reach significantly higher than the state-owned holding companies. Motivation state-controlled listed companies to invest may be based on political, policy, corporate governance objectives may not maximize profits. (4) Although financial investment show rapid development in recent years, productive investment in manufacturing is still the dominant investment. China’s manufacture is still in the origin and development stages of the life cycle of capital accumulation, financial assets has high rate of return, but it is extremely unstable, corporate insiders still have a strong incentive for productive investment.Policy recommendations of this study are as follows:(1) increase the internal human motivation and supervision to prevent corporate insiders against the interests of outsiders. (2) vigorously cultivate institutional investors, and guide their participation in the capital market from the role of "speculators" to "investors" change. (3) to guide the healthy development of the financial investment behavior, wary of over-investment in financial assets, to avoid de-industrialization manufacturing.