Research Onthe Impact Of Leverage For SMEs Inefficient Investment

The research of relationsbetween leverage and corporate’s inefficient investment is a significant theoretical value and practical significance subject. Most of the scholars’research object is the Shanghai and Shenzhen two city main board listed companies or large companies, there are few research analysis was carried out on the small and medium-sized enterprises(SMEs). SMEs in China has gradually developed into an important force for national economic and social development. Shenzhen stock exchange the SMEs board since officially launched in June 2004, the total number of listed companies has exceededremarkably700. The size of the SMEs, financing behavior and mode of operation, difference with large enterprises, so the SMEsis also inefficient investment? It’s characterized by underinvestment or overinvestment? What is the relationshipbetweenleverage and inefficient investment behavior of SMEs? And how to improve the efficiency of corporate investment from financial angle? The paper carried on the thorough study of these problems.This paper reviews the domestic and foreign-related basic research literature, Asymmetric Information theory and Principal-agent Theory are two theories as a solid theoretical foundation,and to explore the impact of leverage for SMEs inefficient investment in theory.In empirical testing phase,thedatais selectedfromSMEsin Shenzhen Stock Exchange from 2009 to 2012, the SMEs board listed companies is found underinvestmentwidespreadly, further, leverage exert to restrain the underinvestment in our SMEs board listed companies. Commercial credit exert to restrain the underinvestment behavior more significantly than bank deposits, short-term borrowings exert to restrain the underinvestment behavior more significantly than long-term bans. Referring to business growth indicators grouped samples, leverage exert tosignificantlyrestrain the underinvestment behavior in high-growth enterprises, which is not significant in low-growth enterprise. According to the empirical results, the paper proposes to make full of short-term leverage,improvedebtcovenants,establishcreditrating system and professional risk assessment system for SMEs and broaden the financing channels for SMEs...