An Empirical Analysis On The Influence Of The Debt Heterogeneity On Investment

In view of China's economy being in a crucial period of reform,improving the status quo of Chinese enterprises' investment and improving investment efficiency are tasks which brooks no delay.Financing policies,particularly the debt financing policies,exert an objective and deep impact on the investment behavior,so it's important to guide investment behavior from the perspective of debt financing.Academia has long been involved in research on the relationship between debt financing and investment behavior,however,the conclusion is not consistent.Some studies have shown that debt financing will increase overinvestment,other studies have come to opposite conclusions,and some research shows that debt financing will lead to underinvestment,different outcomes of these studies showed that only from the perspective of overall debt to research investment behavior also not comprehensive enough.In recent years,some scholars are concerned debt heterogeneity,but they are mainly interested in the heterogeneity of term structure.Overall,the research that how the heterogeneity of debt influence investment behavior is not comprehensive enough now and is awaiting to be explored.This paper selected Chinese listed company's data which from 2000-2015 for sample,and used empirical research method.Respectively from two aspects of different debt term and different debt source,this paper researched the relationship between the heterogeneity of debt and investment behavior.Debt involved in the research reached 90% of total debt,maturity heterogeneity of debt included long term debt and short term debt,and source heterogeneity of debt was divided into commercial debt and financial debt according to Chinese conditions.Definition of investment was also comprehensive which included investment scale and underinvestment,overinvestment and the integral inefficient investment.The results showed that,long-term debt,and financial debt promoted investment scale and increased inefficient investment,short-term debt,and commercial debt inhibited investment scale and slowed inefficient investment.Besides,the influence of long-term debt and financial debt on inefficient investment were stronger than short-term debt and commercial debt,This conclusion was further validated by robustness testing.At the end of the article,this paper put forward some suggestions on how to improve the financing status of listed companies,and then improve the efficiency of enterprises' investment,it also pointed out the shortcomings of the article and predicted the future direction of the study.