# American Institute of Mathematical Sciences

August & September  2019, 12(4&5): 1015-1025. doi: 10.3934/dcdss.2019069

## Enterprise inefficient investment behavior analysis based on regression analysis

 1 Dalian Maritime University, Dalian 116025, China 2 Dalian Commodity Exchange, Dalian 116023, China

* Corresponding author: Wei Li

Received  September 2017 Revised  January 2018 Published  November 2018

Inefficient investment will affect enterprise's survival and long-term development, and ultimately lead to the decline in corporate value. In order to promote the efficiency of the enterprise investment, in this paper, we aim to effectively analyze enterprise inefficient investment behavior, which has great significance in both enterprise management and social resources allocation. Firstly, we propose and analyze some typical enterprise investment theories, such as 1) MM enterprise investment theory, 2) Jorgensen investment theory, and 3) Tobin's q theory. Secondly, we propose a novel enterprise inefficient investment behavior analysis method based on regression analysis. Finally, to demonstrate the effectiveness of the proposed method, we conduct a series of experiments based on the CCER database. Experimental results show that the economy fluctuates across states due to the aggregate cash-flow shock driving the level of aggregate liquidity. Furthermore, we also can see that the particular sample path starts with a series of positive shocks, which can increase the capital value and decrease the cash value.

Citation: Wei Li, Yun Teng. Enterprise inefficient investment behavior analysis based on regression analysis. Discrete and Continuous Dynamical Systems - S, 2019, 12 (4&5) : 1015-1025. doi: 10.3934/dcdss.2019069
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##### References:
Price of capital
Marginal value of cash
Marginal value of capital
Cash to capital ratio
Descriptive statistic of different variabless
 Variable Minimum Maximum Average Standard deviation Age(t-1) 3 17 8.81 2.25 Size(t-1) 15.68 25.74 22.09 1.09 Growth(t-1) -1.17 185.21 0.485 5.17 Lev(t-1) 0.0077 54.27 0.963 2.08 TBQ(t-1) 0.0001 15.92 0.674 0.591 Cash(t-1) 0 0.854 0.257 0.126 Ret(t-1) -0.925 6.38 0.254 0.683 IVV1(t) 0 0.624 0.054 0.147 IVV1(t-1) 0 0.552 0.051 0.068 IVV2(t) -1.39 1.22 0.008 0.163 IVV2(t-1) -1.27 1.05 0.027 0.129
 Variable Minimum Maximum Average Standard deviation Age(t-1) 3 17 8.81 2.25 Size(t-1) 15.68 25.74 22.09 1.09 Growth(t-1) -1.17 185.21 0.485 5.17 Lev(t-1) 0.0077 54.27 0.963 2.08 TBQ(t-1) 0.0001 15.92 0.674 0.591 Cash(t-1) 0 0.854 0.257 0.126 Ret(t-1) -0.925 6.38 0.254 0.683 IVV1(t) 0 0.624 0.054 0.147 IVV1(t-1) 0 0.552 0.051 0.068 IVV2(t) -1.39 1.22 0.008 0.163 IVV2(t-1) -1.27 1.05 0.027 0.129
Regression results summarization
 Variable IVV1(t) IVV1(t) IVV1(t) IVV2(t) IVV2(t) Constant -0.072(-2.134**) -0.081(-2.336**) -0.080(-2.317**) -0.395(-3.819**) -0.386(-3.742**) $Age_{t-1}$ 6.954E-5(0.115) 0.001(0.782) 0.000(0.659) -0.001(-0.581) -0.021(-0.883) $Size_{t-1}$ 0.004(0.115) 0.004(0.782) 0.004(0.659) 0.017(-0.588) 0.017(-0.883) $Growth_{t-1}$ 0.000 (-0.415) -9.78E-5(-0.355) 0.000(-0.372) 0.000(0.463) 0.017(-0.883) $TBQ_{t-1}$ -0.011(-1.968**) -0.013(-1.742**) -0.014(-1.696**) -0.049(-3.741) -0.046(-3.691) $Lev_{t-1}$ 0.000(-0.338) 0.000(-0.416) 0.003 (1.524) -0.002(-0.957) 0.016(-3.752***) $Cash_{t-1}$ 0.052(3.749***) 0.066(4.125***) 0.064(4.121***) 0.268(3.654***) 0.165(3.627***) $Ret_{t-1}$ 0.005(2.025***) 0.008(1.028) 0.003(1.114) 0.028(3.457***) 0.028(3.364***) $IVV1_{t-1}$ 0.475(19.965***) 0.472(18.527***) 0.453(18.508***) $IVV2_{t-1}$ 0.136(3.652***) 0.135(3.827***) $Adj-R2$ 0.258 0.274 0.283 0.097 0.106 $F\;value$ 73.85*** 27.71*** 28.54*** 7.96*** 8.72***
 Variable IVV1(t) IVV1(t) IVV1(t) IVV2(t) IVV2(t) Constant -0.072(-2.134**) -0.081(-2.336**) -0.080(-2.317**) -0.395(-3.819**) -0.386(-3.742**) $Age_{t-1}$ 6.954E-5(0.115) 0.001(0.782) 0.000(0.659) -0.001(-0.581) -0.021(-0.883) $Size_{t-1}$ 0.004(0.115) 0.004(0.782) 0.004(0.659) 0.017(-0.588) 0.017(-0.883) $Growth_{t-1}$ 0.000 (-0.415) -9.78E-5(-0.355) 0.000(-0.372) 0.000(0.463) 0.017(-0.883) $TBQ_{t-1}$ -0.011(-1.968**) -0.013(-1.742**) -0.014(-1.696**) -0.049(-3.741) -0.046(-3.691) $Lev_{t-1}$ 0.000(-0.338) 0.000(-0.416) 0.003 (1.524) -0.002(-0.957) 0.016(-3.752***) $Cash_{t-1}$ 0.052(3.749***) 0.066(4.125***) 0.064(4.121***) 0.268(3.654***) 0.165(3.627***) $Ret_{t-1}$ 0.005(2.025***) 0.008(1.028) 0.003(1.114) 0.028(3.457***) 0.028(3.364***) $IVV1_{t-1}$ 0.475(19.965***) 0.472(18.527***) 0.453(18.508***) $IVV2_{t-1}$ 0.136(3.652***) 0.135(3.827***) $Adj-R2$ 0.258 0.274 0.283 0.097 0.106 $F\;value$ 73.85*** 27.71*** 28.54*** 7.96*** 8.72***