Fixed-asset investment is crucial to macro- and microeconomy. With a review of classic investment theory and empirical research products, the author made an empirical test on this issue by use of sample data of Chinese listed companies. It is revealed that classic investment theory does apply to the determination of investment scale of Chinese listed companies, which fits into investment opportunities, internal cash flow, status and debt ratio. Excessive investment is typical of Chinese listed companies as a whole, although companies of different size tend to have their unique characteristics in determining their investment scale.
Securities Market Herald
fixed asset investment