Empirical Research On The Growth Of Listed Companies,Debt Financing And Inefficient Investment

In recent years，small and medium-sized enterpirses in our country is developingrapidly, plays a decisive role in the country’s economic development. Our country paymore and more attention to the growth of small and medium-sized enterpirses,through the positive fiscal policy and monetary policy to promote the development ofthem. However, due to the relatively small size，imperfect governance system of thesmall and medium-sized enterprises, vairous agency conflicts and informationasymmetry problem is particularly evident, reflect in the ifeld of business investmentis all kinds of inefifciency investment behavior. Investment is an important way torealize the value of enterprise, is the main reason for companies to grow and the basisof the future cash flow growth. Inefficient investment behavior of small and mediumenterprises hinder the healthy and sustainable development of them. Companies haveclose ties between financing activities and investing activities, financing plan take theinvestment plan as a reference，and investment activities arrange the use of funds inaccordance to the financing way, both of them operate coordinated can promote thedevelopment of enterprises. Debt financing as a major financing way of companies,have an important impact on the investment behavior of enterprises. Scholarsconducted extensive research about the influence of overall level of debt, debtmaturity structure and debt sources structure on enterprises investment behavior,studies have shown that the debt both can lead to ineiffcient investment, also canmanagement the inefficient investment, different debt maturity structure and debtsources structure also have a complex influence on investment behavior.Since the opening of small and medium-sized board market in2004，the numberof the listed company is increasing. The establishment of small and medium-sizedplate in our country was to provide direct financing platform for the small andmedium-sized enterpirses which are outstanding，growing，have scientific andtechnological content. Growth of listed companies is the core in the development ofsmall and medium-sized enterprise board market. Previous research showed that thedifferent growth enterpirse have different investment behavior. Therefore，this papertake listed companies of small and medium-sized boards as research objects,combine with the enterprise growth，research on the impact of debt financing toinefficient investment behavior of small and medium-sized enterpirses. Based on thereview of the relevant literature at home and abroad, this paper take years2010-2012 as research time，construct the evaluation index system of the growth of small andmedium-sized board listed companies, according to the results of the evaluation ofgrowth divided the overall sample into high-growth enterprises group and low-growthenterprises group, respectively to study the impact of overall level of debt, debtmaturity structure and debt sources structure to enterprise investment behavior inoverall sample and grouping sample.This article is divided into six parts. The ifrst part is the introduction, whichdescribes the background and significance. The second part is a literature review,literature review from ineiffciency investments, the impact of debt financing onineiffciency investments, the impact of business growth on the investment behavior.The third part is the theory analysis and research hypothesis, describes theprincipal-agent theory，asymmetric information theory and free cash flow hypothesis,then analysis the influence of debt financing, company growth on the ineiffciencyinvestment，and put forward the research hypothesis. The fourth part is the study ofthe design, constructed evaluation index system of small plates listed company’sgrowth, defined the relevant variables, built regression models. The fifth part is theempirical analysis, take descriptive statistics, correlation analysis and regressionanalysis to the overall sample and grouping samples. The sixth part is the conclusionand policy suggestions, and points out research limitations of this article and futureprospects. The results show that debt financing can inhibit corporate investmentspending, short-term debt and commercial credit can constrain excessive investmentbehavior of low-growth enterprises, but led to a lack of investment in high-growthcompanies; long-term debt and bank loans did not play the role of debt constraints,but to promote corporate investment spending. Small and medium-sized board listedcompany shall arrange short-and long-term debt ratio, make it play to theirrespective advantages of improving the eiffciency of corporate investment.