Empirical Research on over-Investment by Listed Companies in China

摘要

Based on the fiscal data of A-share listed companies from 2003-2005 in China, this paper has conducted empirical research and testing on the influence of collusive behavior by major shareholders and managers on investment. The results show that: investment in listed companies of China is of sensitivity to cash flow;such investment-cash flow sensitivity is not due to under-investment out of "financing constraints" but the performance of over-investment. The more serious major shareholder appropriate company funds, the more serious opportunistic behavior of managers, the higher sensitivity investment is to cash flow.