A Study Of The Influence Of Debt Financing On Investment Efficiency In The Enterprise Life Cycle Perspective

The main purpose of this study is to test dynamically the influence of debt financing,debt maturity and debt sources in different development stages on the investment efficiency in the enterprise life cycle perspective. Besides, the study makes suggestions for how to play the governance role of debt financing and improve the investment efficiency.According to the characteristics of the subject, literature research, the combining of qualitative investigation and quantitative investigation, normative analysis and empirical study will be used.First of all, briefly review the related literature which focus on the influence of debt on the investment efficiency and give the concept of investment efficiency and debt financing. And then introduce the principal-agent theory, asymmetric information theory and the enterprise life cycle theory, which lay a theoretical foundation for research hypothesis.Secondly, based on the analysis of the overall development of Chinese manufacturing industry, further introduce the current situation of debt, debt maturity, debt sources and investment efficiency, which lay a foundation for empirical analysis and policy recommendations.Again, divide enterprise life cycle based on the combination of cash flow and verify the rationality of the division according to independent sample T-test. Then use multiple liner regression to test the influence of debt in different development stages on the investment efficiency. The study shows that: debt, short-term debt and commercial credit on the whole can play a role in suppressing non-efficiency investments, though their management intensity differs in different development stages; long-term debt leads to non-efficiency investments in the growth period, but has an effect on improving the investment efficiency in the mature period; bank loans only can perform functions in the mature period.Finally, combine the current situation of manufacturing’s debt financing with the result of empirical analysis, put forward suggestions on improving the investmentefficiency by optimize debt financing which include paying attention to enterprise life cycle, attaching importance to the governance effect of debt financing, optimizing debt maturity structure and debt sources structure.