An Empirical Analysis Of The Debt Structure On Corporate Investment Behavior

Debt maturity structure is mainly to affect the investment behavior of enterprises from the following three aspects.firstly,short-term debt can reduce the problem of excessive investment which caused by shareholder and managers conflict.Secondly, short-term debt can ease the problem of undercapitalize.Finally,duing to the characteristics of the face of debt repayment,it can Reduce the asset substitution problem.Therefore which influence can affect most is our target to get solved. Investment and financing as the two basic economic activities of enterprises are both independent and relative. The new classical investment theory believe technology preferences and output are the decisive factor in enterprise investment activities,they are not relative with financial factor.Therefore, In twentieth Century sixty years later scholars were going to research the relation between investment and financing movement and to explore if the Financing activities can affect the investment.Thus,this paper is going to explore the effect of debt financing on corporate investment behavior.The sources of debt as the debt financing of another component arepopulatlately,especiallybank loans and commercial credit.Infact,differ sources of debt can cause different influence on the investment behavior of enterprises.Forexample,bank loans are restrictive on enterprises loans than commercial credit.Besides,the character of low financing cost becomes one of the reasons which is prevalent in today’s market.Firstly,this paper summarize why I choose this topic and how to write this paper.Secondly,we review the previous theoretical and empirical studies of domestic and foreign scholars on the debt maturity structure and the sources of debt on investment behavior.Then I Put forward four hypotheses and establish an empirical model.Finally I Draw conclusions and policy recommendations.