Debt Financing, Ownership Characteristics And Enterprise Investment

The correlative relationship between investment and financing is an important issue in corporate finance. According to agency costs theory, information equilibrium theory and control rights theory, the impact of debt financial on firm investment has both negative effect and Positive effect. The Positive effect means that leverage is one Mechanism for overcoming the overinvestment Problem where the conflict is between the shareholders and management. The negative impact is that debt reduces the incentives of the shareholder-creditor coalition to invest in positive net-Present-value Investment opportunities, which creates asset substitution and Potential under investment. Therefore, the analysis of financing and investment behavior of enterprises is of great significance. Based on Previous academic research and status of Ownership Characteristics, this Paper makes a research on the impact of debt financing on investment behavior from the Ownership Concentration and the Nature of Controlling Shareholders, so that we could have a more deeply research on this question.Starting from the mechanism analysis of Debt Financing’ influence on Enterprise Investment and based on the existing literature, we first put forward some hypothesis. Then, by using the sample of manufacturing-listed companies during 2009-2013 in Shanghai and Shenzhen stock market and using SPSS21.0, we tested the relationship between Debt Financing and Enterprise Investment with all samples, we then tested whether Ownership Characteristics can alleviate Debt Financing’influence on Enterprise Investment, including Ownership Concentration and the Nature of Controlling Shareholders, trying to optimize the structure of equity to alleviate the f Debt Financing’ influence on corporate Enterprise Investment and increase enterprises’ Investment efficiency. This paper used both normative research method and empirical research method, combining qualitative analysis and quantitative analysis, to study Debt Financing’ influence on Enterprise Investment.The results of empirical research in part four reveals that:(1) In China, there is aNegative relationship between corporate Enterprise Investment and Debt Financing. (2) Ownership concentration is too high or too low will reduce the debt financing for corporate investment behavior of binding. (3) In the state-owned holding companies, debt financing for corporate investment behavior undermined the capacity constraints. According the results of this article, we give the conclusion of the study of this dissertation, as well as policy recommendations.