Study On The Impact Of Debt Structure On Investment Behavior Of Listed Real Estate Companies

Investing and financing activities, as the most basic financial activities of the modern enterprise, are essential for normal management and operation for enterprises. Debt financing occupies a very important role in financing mode of enterprises. Its influence on corporate investment behavior is also a hot spot among academic researches. At present, Chinese scholars mainly focus on the effect of the overall scale of debt financing on corporate investment behavior. With different period and sources, will these produce different effect on the investment behavior? As a typical type of capital intensive industries, China’s real estate industry, the successful completion of the project is very dependent on funding, the main source of funds by acquiring debt, particularly payments to bank loans and sale made. So, non – homologous of debt, period structure and sources structure of debt will be considered in this article from the two aspects. We will take certain real estate industry as the research object, exploring roles in period and source of debt effects on investment spending and investment efficiency for the real estate listed companies, which bring some suggestions to solve problem of real estate listed companies in our countries.In this paper we combs the relevant important theory and the relationship between period structure and source structure of debt and investment behavior of domestic and foreign.Taking real estate listing corporation experience data during 2009—2013 as research sample in our country, we put forward the hypothesis. Considering investment spending and inefficient investment behavior as the measure of investment behavior. Among them, new investment spending is taken as the measure of investment spending and the Richardson(2006) residual model is defined as the measure of inefficient investment behavior. Judging by the residual symbol, the samples are divided into two groups, which are excessive investment and insufficient investment. Then three control variables are introduced, which are growth opportunities, free cash flow and the scale of the enterprise, to investigate separately the effects of period structure and source structure on non—efficiency of investment behavior.The results manifest short term liabilities shows part of the debt constraint effect in our real estate industry listing corporation and in can inhibits the excessive investment for company, while not play against the lack of investment in mitigation effect. Long term liabilities, which is one of the main forms of capital and it has positive correlation for corporate investment, not play its role of debt constraints. Considered from the aspect of the origin of the debt, the governance role of the bank loan has not fully been played, which has some relief for lack of investment but plays no inhibition of company investment expenditure. This draws the different conclusion that bank loan can inhibit investment spending. This may because that banks are still under the intervention of government behavior to a certain extent. Investment spending business credit are negatively correlated with company, and so it can inhibit the over investment problem of the company, but cannot alleviate the lack of investment.Through the empirical analysis some counter measures and suggestions can be put forward in this paper: First, arrangement of debt maturity structure in a reasonable way and the role of short—term debt governance should be effectively played. Second, promote the reform of the bank property right structure and therefore effectively play the debt constraint effect. Third, strengthen business credit management of the real estate company to prevent the credit crisis. At last, develop the bond market to broaden real estate financing sources of listing corporation. At the end of this paper the limitations and further research direction are in thought, it strives to be able to under certain conditions.