Sources And Term Structure Of Debt And Overinvestment

In recent years, the discussion of property and controversy has never ceased,"Ghost towns" caused by real estate development, house vacancy rate is also repeatedly boarded the news headlines, research on real estate gradually become a hot academic research. Real estate industry belongs to the capital-intensive industries in China, and its development is highly dependent on debt financing. Debt financing has a profound impact on corporate investment behavior. In the studies of the effects of debt financing on excessive investment, most scholars research focusing on the overall level of debt financing, debt source or a particular aspect of debt maturity structure. This paper based on summarizing the predecessors’research results, and selection of China’s real estate listed company data from2007to2013as the research sample, to free cash flow hypothesis, the camera governance effects of debt as the theoretical basis, then adopt the method of combining theory and practice, examine the presence of free cash flow of listed company of real estate in our country excessive investment behavior, and the total level of debt and debt sources integrated exploration in many aspects and term structure of the governance effect of debt on excessive investment behavior.This research mainly divided into five parts, The first part is introduction, mainly elaborated the paper research background and significance. The second part is the literature review, respectively from the connotation of the excessive investment and measure, total level of debt, and excessive investment, sources of debt and excessive investment and debt maturity structure and excessive investment in four aspects of induction and summarizing the related literature at home and abroad. The third part, As the theoretical basis, this paper introduces the free cash flow hypothesis and camera governance effect of debt theory, provide theoretical basis for the following study. The fourth part is the empirical analysis. First of all from the development of real estate investment, real estate industry capital chain structure and funding sources of the real estate industry present situation has carried on the descriptive statistical analysis. To draw lessons from Richardson (2006) proposed the expected investment model of the existence of excessive investment of real estate listed companies, the inspection based on investment and cash flow sensitivity setting liabilities from the total level of debt governance effect model, the source of debt and the maturity structure of debt governance effect has carried on the inspection. The fifth part is the conclusion and suggestion, summarizes the research conclusion of this article, and from the macroscopic and microscopic two aspects, proposes the corresponding SuggestionsThrough the analysis, this paper draws the following conclusions:(1) Debt financing is the main financing channels, the listed company of real estate in our country and the existence of excessive investment real estate listed company debt ratio is higher.(2) Real estate investment and cash flow of listed companies in China is highly sensitive, there is excessive investment behavior using free cash flow.(3) The overall debt financing for real estate can inhibit excessive real estate investment behavior of listed companies. Among them, the bank loan has intensified excessive real estate investment behavior of listed companies in our country, and the commercial credit to inhibit excessive investment behavior of listed companies of real estate.(4) Short term debt can effectively suppress real estate investment for listed corporation over investment behavior, but the long-term debt exacerbated the over investment behavior.