The Study On The Relationship Between The Bank

Investment is not only the main force of the development of the listed company, but also is the basis of the value-added of future. It will affect the decisions of the finance and policy of the cash dividends at micro level, and the running situation of the entire economy of our country at macro level. The high-speed of the development of our economy in last decade is inseparable of the rapid growth of the investment, which at the same time brought the imbalance development between different industry. Since2003, the real estate industry, has become an investment target for all kinds of enterprises,appearing the phenomenon of excessive investment.Traditional industry show the situation of over-investment which is excess of producing capacity and waste of resources. As environmental protection, high and new technology and new energy industry show the phenomenon of under-investment.Therefore, today’s global resources are very nervous, how to prevent the inefficient investment behavior of the enterprise, become an urgent practical problems need to be solved.This paper refer to the relevant study of home and abroad, against the non-efficient behavior of listed company, take Social capital theory, the relational financing theory, principal-agent theory, asymmetric information theory and the free cash flow hypothesis, and derivate the function mechanism of the bank-relationship influencing the over-investment and under-investment. By building the empirical model of bank-relationship and over-investment and under-investment, and selecting the panel data of china’s listed companies from A shares from2007to2012to test and verify the model. As a result, the theoretical and empirical study can confirm each other.After the empirical research, this paper find that there exist non-efficient investment generally during our listed companies, including over-investment and lacking of investmentand the investment insufficient phenomenon is more serious. Moreover, as an informal alternative mechanisms,bank-relationship indeed can help private listed-companies get more bank loans.Then we get the conclusion that bank-relationship helps to reduce the non-efficient investment behavior of listed companies. Compared with the non-bank-relationship companies, the company with bank-relationship inhibit excessive investment behavior, but also alleviate the under-investment behavior. So, overall, the bank-relationship can solve the problem of over-investment and under-investment phenomenon which is caused by the conflict of equity agency conflicts and claims agent,and can indirectly reduce the two kinds of agency costs by improving the efficiency of private listed company’s investment.Finally, on regards the research conclusions,this paper puts forward some policy recommendations and the shortages of this study and future research prospects. This study provide evidence for rationality of bank-relationship and a useful reference for the private listed companies to solve the problem of "financing difficulty".