We know that investment and financing has always been an important problem of enterprise development. As the development of Chinese economy, it gets much more attention by the enterprise management and the scholars all over the world. However,the growth of enterprise’s investment seems to be beyond the scope of a reasonable level, and many enterprises have a low efficiency of investment, which affect the enterprise’s financing decision in turn, such as debt maturity decision. The decision eventually lead to corporate investment and financing’s term mismatch. This is partly caused by excessive investment. Specifically, over investment and short-term financing for long-term investment are all financial problems which are triggered by investment and financing problems.The studies found that information asymmetry, the principal-agent problem, and the corporate cash holding is one of the causes of excessive investment, furthermore, economic cycles and cash holdings are closely related. Therefore, there is also a certain connection between the economic cycle and excessive investment.Secondly, the studies also found that most of the excess investment by enterprises is an efficiency long-term investment, coupled with the phenomenon of short-term debt maturity, which make the behavior of short-term financing for long-term investments more common. However, we are lack of relative and Systematic research, especially about the influence factors.Studies on excessive investment at home and abroad have been very deep, but the scholars rarely have theresearches about the relationship between excessive investment and Short-term financing for long-term investment, so as the economic cycle.Therefore, this paper is to study the excessive investment’s impact on short-term financing for long-term investment with different stages of the economic cycle.According to the mechanism analysis, we raise the research hypothesis, choose and filter the A-share listed companies which are listed in Shanghai and Shenzhen securities exchange as research samples, using the date from 2001 to 2013, the article explores the excessive investment’s impact on the behavior of Short-term financing for long-term investment at different stages of economic cycle. Firstly, the article studies the Excessive investment’s influence on the enterprise behavior of Short-term financing for long-term investment, and the results show that it will be more serious if there is excessive investment. Then, the article explores the excessive investment’s impact on the behavior of Short-term financing for long-term investment at different stages of economic cycle. The empirical results show that there is a difference influences at different stages of economic cycle. During the expansion phase of economic cycle, the higher degree of excessive investment, the more serious of the Short-term financing for long-term behavior. But in the austerity phase of economic cycle, the higher degree of excessive investment, the lower degree of enterprise’s Short-term financing for long-term behavior.The research innovation point of this paper is that studying the excessive investment influence on enterprise short combines long shots, which is a new angle of view. In addition, we also introduced the economic cycle, a macro factor, explores the relationship between the two factors above under different stage of economic cycle.But the measures of the behavior of short-term financing for long-term investments and excessive investment need to be further perfect. |