Study On The Impact Of Debt Sources Structure Over The Inefficient Investment Behavior

As the two basic financial activities of modern enterprises, financing and investing activities have been the research keys of finance and business theory. Among them, there are many scholars study the relationships between debt financing and investment behavior. Until now, the research mainly focuses on the impact of debt and debt maturity structure on investment behavior, however, the study on the relationship between debt sources structure and investment behavior is relatively less. The real estate industry belongs to the capital-intensive industry in our country, its project development relies on debt financing, especially domestic lending and advances received.Therefore, based on the summarization of the related theory and literature about the relationship between debt, debt maturity structure and investment behavior, we analyze the current situation of the real estate industry in our country, including the development course, structure of funded sources and institutional background. Through the allover analysis, we put forward our research Hypothesis and the regression model. Using the real estate listed companies in2008-2012as the study sample, we set up multiple regression model to verify the relationship between the debt sources structure and the inefficient investment in the real estate enterprises, and the inefficient investment is defined by the residual measurement model from Richardson(2006). Then, we divide the samples into excessive investment and inadequate investment group and respectively investigate the impact of bank debt, advances received and account payable on the inefficient investment behavior.The empirical result show that the overinvestment and underinvestment behavior both exist in the real estate listed companies, the sample size of underinvestment is more than overinvestment, but the extent of overinvestment is more than underinvestment. The bank debt can aggravate the overinvestment and alleviate the underinvestment; the account payable can restrain the overinvestment and aggravate the underinvestment; the advances received can restrain the overinvestment and aggravate the underinvestment in a not significant level. Finally, according to the above analysis and results, we put forward five suggestions to perfect the debt sources structure in real estate enterprises and improve the investment efficiency.