A Study of Chinese A-Share Listed Companies: Effect of Corporate Valuation on the Investment Level

Li Zhanbiao
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Li Zhanbiao: Asia Metropolitan University, Malaysia

International Journal of Science and Business, 2021, vol. 5, issue 7, 70-93

Abstract: Market value management as an important measure of investment behavior, its value is reflected through reasonable and scientific corporate valuation. Corporate governance can improve the level of market value management to a certain extent. Therefore, how to improve the level of market value management through scientific and reasonable corporate valuation has naturally become the focus of theoretical and practical circles. Compared with western developed countries, the investment efficiency of investors in China’s capital market is low, and the inefficient investment phenomenon is serious, which seriously hinders the healthy development of China’s capital market. This paper uses the research data of A-share listed companies in Shanghai and Shenzhen from 2011 to 2019 as samples, and obtains first-hand information by means of questionnaire survey and anonymous interview. According to the different situations of ownership structure, property right nature and growth ability, this paper studies the guiding effect of corporate valuation on the investment level of Chinese enterprises. The results show that corporate valuation can effectively improve the investment level of Chinese listed companies and inhibit inefficient investment. Scientific equity structure and equity balance can make a good corporate valuation, so as to improve the investment level of Chinese enterprises; compared with non-state-owned enterprises, corporate valuation plays a more significant role in guiding the investment level of Chinese enterprises and restraining the inefficient investment of Chinese enterprises. Therefore, it is necessary to give full play to the guiding effect of corporate valuation on the investment level of Chinese enterprises. Through the system design, construction of the rule of law, corporate governance, internal control construction with many ways, such as to improve the growth of enterprises, to perfect supervision and effective incentives, through the market effective drive to the real reflection of the enterprise’s valuation, other investors to invest effectively guide the capital market, at the same time improve the company’s investment efficiency and management level, inhibit the effective investment.

Keywords: corporate valuation; investment level; property right nature; ownership structure; growth ability (search for similar items in EconPapers)
Date: 2021
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