Research On The Relationship Between Debt Maturity Facture And Enterprise Investment Scale

Debt financing, as one of the most important corporation fund raising ways, not only provides the capital a company needs, also provides an effective way of corporate governance. In the past, many scholars, domestic or foreign, have researched how debt financing worked on corporate governance. Their researches have proved debt financing is an effective way to supervise a company. Despite they’ve got a lot of achievements, however, they limited their researches on total liabilities and seldom researched the structure of debt financing, for example, debt maturity. In fact, different structures of debt financing have different effects on corporate governance. Take debt maturity for example, the shorter debt maturity is more effective on corporate governance, while the longer debt maturity is less effective. This thesis, based on Principal-Agent Theory, is about to research the relationship between debt maturity and the investment scale.According to the past researches, many factors can affect how debt financing works on corporate governance, for examples, national institution, economic background, industry, laws. In order to better understand how debt maturity works on corporation government, this thesis tries to eliminate other factors’influence, so we limit our research object on China’s manufacturing. In this thesis, we are going to talk about growth opportunities and ownership, because even we have set our research object on China’s manufacturing, but we can’t ignore the influences of these two factors. So in this thesis, according to these two factors, we severally divide our sample companies into two groups and we are going to talk the standards how to divide groups.ContentThis thesis includes6chapters. The first chapter mainly talks about what problem this article re is going to research and the research background. The second chapter provides achievements other scholars have got. The third chapter explains theories which this thesis is based on. The fourth and fifth chapters are empirical research. The sixth chapter tells the final conclusions.Conclusions:In our research, conclusions are as followings:Firstly, among manufacturing companies, current liabilities take mainly part of total liabilities. Term of liabilities doesn’t match terms of assists.Secondly, on the whole, we could say current liabilities and investment scale have negative correlation; long-term liabilities and investment scale have positive correlation.Thirdly, in state-owned holdings companies, current liabilities and investment scale have positive correlation; while in private companies, current liabilities and investment scale have negative correlation. Long-term liabilities and investment scale have positive correlation both in state-owned and private companies.Last, in companies with high growth opportunities, current liabilities and investment scale have negative correlations; in companies with low growth opportunities, current iiabiiities and investment scale have negative correlations. Long-term liabilities and investment scale have positive correlation both in high and low growth opportunities.