The Effect of Equity Structure,Financial Leverage to Investment Behavior of Companies Titled ST——Empirical Evidence from Listed Companies titled ST in China
The investment behavior of ST companies is the vital issue which capital market concerns.Based on this fact,this article,from the perspective of shareholders and creditors,examines the effect of corporate ownership structure and financial leverage on ST corporate investment spending.The selected data is from the background of listed companies in A-stock market titled with ST between year 2005 and year 2012.According to our research,we believe that ownership concentration as well as long-term liabilities can promote corporate investment,whilst the balance of equity and short-term debt do the opposite.Additionally,we find that the larger the scale of the ST companies,the less their corporate investment while free cash flow keeps positive correlation with investment spending.