| Summary: | 碩士 === 國立臺灣科技大學 === 財務金融研究所 === 105 === Investment decision, financing decision and dividend decision together make up financial decisions. Investment decision is one of the important financial decisions in a company, and it is the core in financial decisions. Meanwhile investment decision as an important aspect of enterprise value decisions, it would be far-reaching effects on the development of company. Hence, the study of corporate investment behavior has become one of the important issues of academic research.
This article is based on the investment behavior of company as the starting point, with the MM theory and information asymmetry theory, learn from domestic and foreign related literature’s research methods and conclusions, using 2007-2016 listed and OTC Taiwanese firms as subjects, to explore the company's share price, liquidity ratio and financing cash flow. How to impact the company's investment scale respectively by multiple linear regression analysis.
Empirical studies show that, in general, (1) There is positive correlation between financing cash flow and investment scale. The funds be raise by company can be used for the company's operations and development, it will also drive the company investment. (2) There is negative correlation between liquidity ratio and investment scale. High liquidity ratio indicates that the company has good solvency. But the reverse is the company may prepare too much cash for debt service, leading to funds for investment become insufficient. (3)There is positive correlation between company's share price and investment scale. The share price represents the company's operating conditions, high price will bring the company more funds for business development.
Keywords: Investment decision, Stock price, Liquidity ratio, Financing cash flow
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