| The equipment manufacturing industry is the foundation of national economic development,during the period of thirteenth five year plan,the equipment manufacturing industry is still the most important to make China become a manufacturing powerhouse.However,in recent years,the problem of over-investment in the equipment manufacturing industry has not been a good solution,there is the over-investment of the low-end equipment products and a lack of high-end equipment products.Therefore,there are important to study the influencing factors of over-investment in the equipment manufacturing listed companies.Dased on the domestic and foreign literature research about the influencing factors of over-investment,this paper analyzes the present situation of over-investment in the equipment manufacturing listed companies.Using the method of literature research and questionnaire survey,on the basis of analyzing the main influencing factors of over-investment in the equipment manufacturing listed companies,this paper proposes the hypothesis of this study.And then makes an empirical test with the expected investment model of Richardson(2006)from a total of 700 samples of 70 equipment manufacturing listed companies,The empirical result shows that 36.7% of the equipment manufacturing listed companies exist over-investment behavior.Then the paper takes the companies with over-investment as a sample,to make an empirical test of the research hypothesis,the empirical study shows:(1)The free cash flow is positive correlation with over-investment in the equipment manufacturing listed companies.(2)The debt financing is negative correlation with over-investment in the equipment manufacturing listed companies,but the result is not significant.(3)The ownership structure does not play a role in inhibiting the over-investment behavior the equipment manufacturing listed companies,it may be that the ownership is more dispersed,the supervision of shareholders is not play effectively.(4)The board size,the board of supervisors and the proportion of independent directors is a significant negative correlation with the over-investment,that is,corporate governance can inhibit the over-investment behavior effectively in the equipment manufacturing listed companies.According to the research results,this paper puts forward some methods to improve the investment decision of enterprises and improve the efficiency of enterprise investment.These methods include reducing retained corporate free cash flow,optimizing the structure of debt financing,strengthen the corporate governance role and so on.This study shows that “the free cash flow hypothesis”.At the same time,it uses stepwise regression method in empirical test to find the influencing factors of the over-investment,and then builds a regression model,it provides a theoretical basis for the research of overinvestment in China. |
