Research On The Impact Of Debt Structure On Investment Behavior Of Manufacturing Listed Companies

Financing and investment are the two main aspects in fund movement of modern enterprise and also are two basic financial activities of enterprise. Financing activities are the process of corporate fund-raising in order to meet the needs of capital investment and use. Investments are important activities to conduct normal production and operation, and expand the production scale, and also are one of the key factors to expand production and create value. Over-investment will cause negative net present value and bring damages to the corporate value, and even lead the enterprise into financial distress; under-investment will also cause the enterprise to lose appropriate investment opportunities and bring damages as well. Therefore, a full study on corporate investment behavior has profound significance on improving investment efficiency. Investment activities and financing activities are closely related, and both are important factors in influencing corporate value. Debt financing as an important part of the financing activities has a more far-reaching significance on the impact of investment behavior. Generally, debt structure can be divided into debt maturity structure and debt source structure. In this paper, debt maturity structure includes long-term liabilities and short-term liabilities; debt source structure includes commercial credit and bank credit. From the view of debt maturity structure, this paper is designed to study whether the long-and short-term debt can produce more effective impact on corporate investment behavior by curbing excessive investment or alleviate under-investment; and from the view of debt source structure, this paper is designed to study whether the commercial credit or band credit can produce more effective impact on corporate investment behavior in the same way.Based on the summary of current research status at home and abroad, using the basic theories of Principal-agent theory and Free Cash Flow Hypothesis, systematically applying the method of theoretical analysis and empirical testing, this paper analyzed and discussed the impact of debt structure on corporate investment behavior.This paper firstly took a logical and empirical analysis in support of the existing theory.It proposed four hypotheses running through the whole text. Based on the variables involved in the assumption, it corrected the model in previous studies and added the variable index needed.This paper selected the Shanghai and Shenzhen A-share listed manufacturing companies’status from 2012-2014 as sample, conducted descriptive statistics, simple correlation analysis and multiple linear regression analysis in accordance with standard empirical procedures, and respectively discussed the basic characteristics of variables, simple correlation between the variables and the correlation between the debt structure indicators and corporate investment behavior, and made a validation on the original hypothesis based on the whole research. The study found that there exists negative correlation between long-and short-term liabilities and corporate investment spending. Besides, this negative correlation also exists between commercial and bank credit and corporate investment spending. But these two correlations are different in the influence on corporate investment spending. Finally, this paper proposed corresponding countermeasures on the basis of empirical findings.