Debt Maturity Structure And Investment Relationship Between Financial Leverage

Investment is an important research areas of modern financial theory. The difference between the Chinese market and the markets of developed countries are at least lead to the relationship between Chinese enterprises leverage, debt maturity structure and corporate investment and enterprises in developed countries differ in many respects. The theoretical research focuses on the relationship between debt maturity structure and business investment. In recent years, theorists and scholars’ research before gradually realized that mostly ignored the endogenous consider the impact of financial leverage, thus making it an urgent need to improve the area.This paper selects2003-2012A shares listed in Shanghai and Shenzhen981companies as the research object, sort and review relevant literature, the introduction of financial leverage factor analysis, the relationship between debt maturity structure and business investment, the combination of qualitative and quantitative analysis. Relying on agency cost theory, signal asymmetry theory, duration matching theory, the theoretical basis of the principle of acceleration type of investment theory, neoclassical investment theory and Tobin’s Q investment theory describes the relationship between debt maturity structure and investment. In research methods, the use of two-stage regression method using GMM (GMM) method in the second stage regression model. An Empirical Analysis of the relationship between corporate investment, debt maturity structure and leverage, and the empirical results obtained, and accordingly put forward a series of recommendations.The results show that: When not consider liquidity risk factors, shortening debt maturity structure can effectively promote investment. Role in promoting corporate debt maturity structure of investment because of the weakened liquidity risk. With the increase of liquidity risk, but it can effectively reduce the leverage to promote business investment. In addition, the state-controlled enterprises and non-state-owned enterprises in the selection of financial instruments showed almost completely different characteristics. In the current state of the debt maturity structure of state-owned holding companies tend to promote business investment by reducing the debt maturity structure, rather than state-controlled enterprises are mainly to promote business investment by reducing leverage. Debt maturity structure and interaction coefficients leverage and liquidity risk proved too much short-term debt may still make state-controlled enterprise into a liquidity trap, but the special relationship between the state-controlled enterprises and government-owned enterprises may be able to make effective reduce the threat of liquidity risk.