Research On The Impact Of Corporate Bond On Enterprise Investment Efficiency

In modern enterprises,investment and financing are interrelated and interdependent,investment is the basis for the existence and development of enterprises,and financing is one of the basic conditions of investment.In the West,as a form of financing methods,corporate bonds has a wide range of existence,the corresponding research is relatively mature,but in China it is a new method of financing.This paper aims to study the relationship between corporate bonds and corporate investment efficiency.From the view of empirical research,some scholars have suggested that corporate bonds have an inhibitory effect on overinvestment and have a mitigating effect on the lack of investment.It is believed that corporate bonds can inhibit the inefficient investment of enterprises.Assuming the firm is in a state of financing constraints,will it change the extrapolation of existing scholars?Based on the assumption of financing constraints,with particular emphasis on the use of statistical data,this paper reveals the direct and indirect effects of corporate bonds and heterogeneous debt on corporate investment.Through the theoretical analysis,this paper holds that the corporate debt can reduce the agency cost caused by the principal-agent relationship between the shareholder and the manager,alleviate the problem of information asymmetry,and restrain the free cash flow of enterprises,thereby inhibiting the enterprise's inefficient investment.Based on the theoretical assumptions,this paper uses the annual data of companies listed on the Shanghai Stock Exchange from 2007 to 2015,then get the inefficient investment data of the enterprise as the explanatory variable drawing on Richardson's inefficient investment model.Using the corporate bond issuance data and bank loan data as the main explanatory variable,this paper validates the impact of corporate bond issuance variables on inefficient investment using Eviews6.0.At the same time,this paper also examines the differences in the impact of corporate bonds issuance and bank loan on inefficient investment,especially focusing on the differences in the impact of corporate bonds on inefficient investment under different financing constraints.The empirical results show that there is a significant negative correlation between corporate bond issuance variables and enterprise inefficient investment.As one of the ways of debt financing,corporate bonds have the characteristics of repayment,which can effectively inhibit the inefficiency of enterprises Investment.There is also a significant negative correlation between bank borrowing and inefficient investment,which shows that as a creditor,the bank can supervise the borrowing company and can help to promote the efficiency of the enterprise investment.Dividing bank borrowings into two parts:short-term borrowings and long-term borrowings,the empirical study shows inhibitory effect of bank borrowing on inefficient investment is mainly through long-term borrowing.Short-term borrowing has no significant effect on inefficient investment.In examining the impact of corporate bonds on investment efficiency under the conditions of financing constraints,three univariate indicators,such as firm size,interest protection factor and corporate attribute,are selected as the proxy variables of financing constraints,and the regression analysis are carried out separately.It is found that corporate bonds are more effective in managing inefficient investments in companies with more severe financing constraints when the enterprises are grouped according to firm size and interest rate multiplier indicators.In the case of grouping according to the attributes of the company,it is found that corporate bonds has a significant effect on the inefficient investment of state-owned enterprises,but the effect on non-state-owned enterprises is not significant.Based on the above theoretical and empirical results,China should actively develop the corporate bond market,and encourage enterprises reasonable use of corporate bonds in accordance with its financing constraints,production and operation status.