Effects Of The Debt Maturity Structure Of Corporation With Different Growth On Investment Behavior

Research of the influence of debt maturity structure on enterprise investment behavior has always been the focus of financial decision-making committee of any enterprise. With the improvement of corporate governance mechanism, and one-after-another accomplishments of Joint-stock reform of state-owned commercial banks, the choice of debt maturity structure has come to the gradual realization of those corresponding beneficiaries such as managers, investors etc, and it is not only one of the very important factors influencing the company making the right investment decision, but also a representation of the financial risks. In terms of enterprise development which is set as the measuring standard of testing the enterprise's future value, the choice of debt maturity structure has also been greatly impacted. the degree of development has posed different requirements of the amount of capital, thus it also calls for different requirements of investment scales.There are many domestic scholars conducting some research about the influence of debt maturity structure on the investment, however they fail to consider the comprehensive effect of both long-term and short-term debt, instead they just take the long-term debt into account. Centering on the debt maturity structure, foreign scholars have done a lot of effective researches from which the conclusion deduced are basically mature. By adopting the researches of debt maturity conducted both at home and abroad, combining the status quo of China, this thesis is set to analyze the influence of different debt maturity of Chinese listed companies on the investment from the angle of their development. this thesis is divided into 6 partsTheⅠpart is introduction: it is mainly about the realistic and theoretic background of the research as well as the purpose and significance of it. This thesis is set out to analyze the influence of debt maturity , ie. Long-tern and short-term debt ratio on the investment from the angle of the company's development.TheⅡpart is review of materials: it mainly deals with materials on the basis of Agent Theory, cash flow hypothesis, the asymmetric information theory and maturity matching theory. Agent Theory assumes that investment is influenced by debt maturity in the following 3 aspects: Over-investment , asset substitution, and inefficiency investment. Cash flow hypothesis presumes that excess cash flow can easily lead to Over-investment and short-term debt can be a good solution to this problem. he asymmetric information theory is that the choice of the debt maturity delivers the good and bad information. maturity matching theory figures that the company's assets period should match debt maturity.TheⅢpart is theoretic analysis: it theoretically demonstrates the influence of debt maturity in different phases of development on the investment, and makes 3 hypothesis: NO. 1 is to assume the inconsistenc between long-term and short-term debt maturity and investment scale. NO. 2 is to assume the relationship of the relativeness of long-term and short-term debt maturity and investment scale with the development of the company. NO. 3 is to assume the difference between long-term and short-term debt maturity and investment scale.TheⅣpart to sample selection and model design: with data from Chinese manufactory listed companies during 2001 and 2005 as the target, 383 companies are screened as the samples. Companies'development is set as the virtual variable, investment the explained variable, long-term and short-term debt maturity ratio the explaining variable, Q , capital flow and sales growth the controllable variable TheⅤpart is analysis of empirical results: through descriptive statistics, concerned analysis, returning result check and stability check, the conclusion is drawn as follows: there is negative relationship between long-term and short-term debt and investment expenditure, while positive relationship between long-term debt maturity ratio and investment expenditure; a negative relationship between the relativity of long-term and short-term debt with investment scales and the development of the company; a positive relationship between capital flow and investment expenditure: a negative relationship between Q value and investment expenditure , which is inconsistent with Q theory; the non-apparent impact of sales revenue on investment expenditure shows that the equation is also stable even though sales revenue is not taken into consideration.theⅥpart is conclusion and suggestion: 1, inconsistence of investment influence given by long-term and short-term debt ;2, negativity of the relativity of long-term and short-term debt with investment scale and the companies'development;3, sensitive differences between long-term and short-term debt and investment scale. The suggestions are: perfect the finance supervision system of banks; improve the legal system to protect the interests of creditors; develop the bond market, improve financial market liabilities; establish a reasonable corporate-governance structure; choose a reasonable debt maturity in accordance with the characteristics of their own development.