Fixed Asset Investment and Enterprise Performance Based on the Moderating Effects of the Nature of Equity

Abstract

Decisions on fixed asset investment have always been the top priority of enterprise production, operation and management. The success or failure of major investment decisions will be directly related to the performance, survival and development of enterprises. How fixed asset investment affects enterprise performance is still inconclusive, indicating practical significance of continuous in-depth research. In addition, the influence of fixed asset investment and enterprise performance might vary between SOEs and non-SOEs. Therefore, this paper attempts to integrate the nature of equity, fixed asset investment and enterprise performance into an analysis system, combined with the institutional environment with Chinese characteristics, to examine the heterogeneity of fixed asset investment-enterprise performance relationship between SOEs and non-SOEs. Results showed that fixed asset investment of A-share listed companies from 2015 to 2019 was significantly negatively related to enterprise performance. Compared with non-SOEs, the scale of fixed asset investment of SOEs was more dispersed, and the increase in fixed asset investment of SOEs had a more significant negative impact on enterprise performance.