Study On The Impact Of Debt Financing On Investment Behavior For Listed Companies In China

The core content of corporate finance is the financing decision and investmentdecision. Debt financing decisions of enterprise reasonable and effective to reduce themistakes of investment decision, improve the effectiveness and investment efficiency.Therefore, more and more listed companies are focusing on it. Foreign research on theimpact of debt financing on investment behavior for listed companies is earlier and more,but because of the different economy development condition and cultural environment inChina, many foreign research is not fully suitable for the listed companies of china.Therefore, this article takes listed companies as angle, and analyzes the relationshipbetween debt financing and investment behavior with data of annual reports.In this study, debt financing is characterized by five attribute, which areasset-liability ratio, commercial-credit ratio, bank-lending ratio, short-term debt ratio,long-term debt ratio. Meanwhile, the Tobin Q value, cash flow, sales revenue and annualdummy variables are chosen as the control variables. The explanatory variables areinvestment expenditure. In this study, the sample is selected from Shanghai and Shenzhento2009-2011China’s the A share manufacturing listing Corporation, the data is selectedfrom annual reports from2008to2011. In this paper, the overall level of debt financing,empirical test of different sources of the level of debt, debt levels and different period oflisting Corporation investment expenditure. The results show, the overall level of debtfinancing and investment spending is negatively related to listing Corporation,Commercial credit, short term debt and investment spending is negatively related tolisting Corporation.,And bank loans, long-term liabilities and listing Corporationinvestment spending positively correlated. According to the empirical results, this paperputs forward suggestions on reasonable arrangements for the investment behavior of the listing Corporation debt financing and standardization of enterprises in china.