Debt Constraint, Investment Efficiency And Corporate Sustainable Development

In recent years, the issue of sustainable development of the listed companies is attached more and more importance of scholars and managers of listed companies. Managers are eager to know how to adjust their corporate governance structure to accelerate achieving sustainable development of the company. Debt constraints, as the important tool of corporate governance, it is beyond doubt that has certain influence on the sustainable development of company. However, what needs to be explored is its specific mechanism of action for the sustainable development of the company. Based on the constraint mechanism of the debts and their camera control function, this article attempts to research specific mechanism of action of debt constraints to the sustainable development of the company from three aspects:the level of total debts, short-term debt and commercial credit, in order to provide advisory guidance for selecting the optimal debt structure and realizing sustainable development for listed companies.This article used Chinese manufacturing listed companies in Shanghai and Shenzhen as the research sample, using panel data of 2003-2012 sample companies, and did the empirical research on the specific mechanism of action of debt constraints to the sustainable development of the company. Conclusions are as follows:(1) On the level of overall samples:asset-liability ratio (DB), short-term debt ratio (SD) and the sustainable growth rate of listed company (SGR) are in negative correlation relationships. Commercial credit ratio (CD) and the 1 sustainable growth rate of listed company (SGR) are in positive correlation.(2) On the level of grouping samples:when listed companies are in a state of excessive investment, the increase of asset-liability ratio (DB) and short-term debt ratio (SD) can aggravate the degree of excessive investment of listed companies, which deteriorate the sustainable development level of listed companies. While the increase of the commercial credit ratio (CD) can alleviate the degree of excessive investment of listed companies, and then optimize the sustainable development level of listed companies. Therefore, when listed companies are in a state of excessive investment, they should try to reduce the proportion of asset-liability ratio (DB) and short-term debt ratio (SD) and appropriately increase the ratio of business credit (CD), in order to reduce the negative impact of debt constraints on sustainable development to a minimum.When listed companies are in a state of inadequate investment, the increase of asset-liability ratio (DB) and short-term debt ratio (SD) can aggravate the degree of under-investment of listed companies, which deteriorate the sustainable development level of listed companies. While the increase of the commercial credit ratio (CD) can alleviate the degree of under-investment of listed companies, and then optimize the sustainable development level of listed companies. Therefore, when listed companies are in a state of inadequate investment, they should try to reduce the proportion of asset-liability ratio (DB) and short-term debt ratio (SD) and appropriately increase the ratio of business credit (CD), in order to reduce the negative impact of debt constraints on sustainable development to a minimum.