碩士 / 國立交通大學 / 財務金融研究所 / 101 / Investment provides the motive power of a company’s expansion. However, the literature has long recognized that companies’ investment decisions deviate from MM theory due to frictions in the real world. The companies’ investment behavior in the emerging market is particularly complicated because of government intervention. Take the Chinese market for example, a strategy of share division of listed companies before 2005 caused the interest conflict between tradable stockholders and non-tradable stockholders, even spoiled the development of capital market and lowered the quality of corporate governance. The influence was so enormous that the Chinese government implemented the split share structure reform in 2005, hoping to modify the defect of the share division strategy.
Our analysis, based on the background of reform and companies’ investment behavior, confirms that the split share structure reform could mitigate the agency problem arising from interest conflict. First, we discover the significantly positive relation between investment expenditure and investment opportunities after the split share structure reform, while it was not significant in post-reform samples. Second, we find that the sensitivity of investment expenditure to investment opportunities is significantly higher for those SOE companies whose directors participate in the ownership after the reform, while it was not significant in post-reform samples. In NON-SOE samples, regardless of the directors’ ownership, the investment expenditure only has significantly positive relation with firms’ investment opportunities after the reform.
Taken together, this study suggests that firms’ investment behavior has a lot to do with government intervention, and the split share structure reform would urge the Chinese listed companies’ directors to execute their investment decision on the base of firms’ investment opportunities.
| Identifer | oai:union.ndltd.org:TW/101NCTU5304006 |
| Date | January 2013 |
| Creators | Wang,Kuan-Wen, 王冠文 |
| Contributors | Wang,Sue-Fung, 王淑芬 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 31 |
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