An Empirical Analysis About The Impacts Of Debt Maturity Structure On Chinese Listed Companies' Overinvestment

Debt financing and investment,as the two basic financial business activities of corporation,are closely linked.Most of the discussion on the balance of financing will be involved in investment decision-making,and the study of the behavior of business investment often starts from the perspective of debt financing.Existing research results show that the liabilities-creditors conflict arising from debt financing will cause shareholders/managers' alternative assets and under-investment behavior. At the same time debt could reduce the over-investment behavior liabilities arising from the shareholders-managers of conflict.Soft budget constraint would wake contingent governance of debt.Different term structure of liabilities of the agency costs is also different.Based on the above ideas,this paper bases on the exciting study,and selects Chinese listed companies from 2003 to 2006 for the study samples.This paper inspects of the sample data of all listed companies,and distinguishes the nature of ownership(state-controlled listed companies & non-state controlled listed companies). At the same time,this paper researches the impact from debt maturity structure to corporation over-investment behavior by classification.Empirical results show that there is a significant effect from the debt maturity structure to Chinese over-investment behavior.The correlation between the short-term liabilities and Chinese listed companies' over-investment behavior is negative.The correlation between the short-term liabilities and Chinese listed companies' over-investment behavior is positive.Because of the soft budget constraint,for state-owned listed companies,long-term liabilities for the effect of over-investment are greater than the non-State-owned companies.And short-term liabilities for the effect of over-investment are greater than the non-state-owned companies.We come to an conclusion based on the empirical analysis.This article also gives the recommendations and makes an prospect of future research.