Based on the theories of investment and finance decisions,
this study analyzes the influences of financing decision, dynamic investment
on the value of enterprise property empirically. Learn from Leland (1994), Sundaresan
and Wang (2007), we use a sample of 380 Chinese listed companies in manufacturing
during the period of 2003-2011 and find that: (1) Compared with the Non-SOEs,
SOEs with lager size, higher profitability and better operating environment
are easy to bank borrowing and equity finance; (2) Volatility of companys
price and changes of asset loss rate significantly affected the value of enterprises
property, especially the loss rate; (3) non-SOEs can make better decisions of
investment and finance than SOEs, with a better level of reach their goal of
property value (67, 87%).
Zhe-Fan Piao and Le Zhang, 2013. Financing Decision, Dynamic Investment and Enterprise Property Value: Evidence from Chinese Listed Companies in Manufacturing. Journal of Applied Sciences, 13: 5318-5326.