Empirical Study Of The Influence Of Captical Expenditure On Corporate Performance Of Listed Manufacturing Companies

Investment not only has a significant role in stimulating economic growth,but can benefit expansion of enterprise power;optimizes the assets structure and improves technology level.It’s the main way for a company to be competitive,deciding the enterprise’s survival and development.At present,full research has been made on investment impact on GDP and the issue of a single business capital spending,but few scholars have researched the relationship between capital expenditure and corporate performances from the perspective of the whole industry,and study from the perspective of manufacturing is rarer.So by positive analysis,this paper tries to find out the relationship between capital expenditure and corporate performances;to help the authority identify the role of investment;to actively conducts investment events for reference;and to give suggestions to the government for policy making and help the investors make decisions.Based on the Keynesian multiplier theory,the theory of capital organic constitution and the theory of economy scale,this paper first conducted the theoretical analysis on investment spending and constructed its theoretical model.In empirical research,the paper selected the data of the financial statements of the listed companies from 2007 to 2014 as research sample to redefine the capital expenditure from the perspective of finance,and choose the item of Cash paid for buying fixed assets,intangible assets and other long-term investment in Cash Flow from Investing Activities so as to measure the capital expenditure and reflected the investment condition of the enterprise.Then the research selects ROE and ROA from the actual data to check and calculate the enterprises’ performance.At last,random effects model of panel data are employed to empirically analyze the influence of newly increased capital expenditure and the increasing rate of capital expenditure on the enterprises’ performance and its lag.The empirical results shows that capital expenditure growth rate plays a significant role in promoting enterprise performance.Capital expenditure and enterprises performance also have a significant positive correlation in Chinese manufacturing industry and there is a lag of one year.The innovation of this article is mainly manifested in the following two aspects: in terms of model design,the investment growth rate is introduced into the model as a continuous representation of capital expenditure.Meanwhile it makes attempt to clarify the methods on the relationship between capital expenditures;corporate performance has carried out the beneficial attempt;in the meantime,with continuous data guaranteed,a lag inspection is carried out,which makes consideration more comprehensive;explore the characteristics of capital expenditure impact on corporate performance.If possible,the next step will be further analysis on the division of the industry groups and different scale enterprise manufacturing industry segment of this relationship.