Financial Ecological Environment,Debt Financing And Under-investment

Small and medium-sized enterprises are the basic driving force of China's economic development.In recent years,the increasing number of small and medium-sized enterprises has made great contributions to China's economic development and has played a major role in increasing employment and maintaining social stability.The state also pay more and more attention to the future development and growth of SMEs,have promulgated a number of policies to promote the development of China's small and medium enterprises,and achieved some success.However,due to the small scale of small and medium-sized enterprises in China,the internal management is not standardized,the level of technical equipment is backward,the market competition is fierce and other serious problems,its development situation is still not optimistic.Investment behavior has a pivotal role in the survival and development of the enterprise.It not only affects the daily production and business activities,but also the realization of the value of the enterprise.Some scholars have shown that China's small and medium-sized enterprises are generally faced with serious financing constraints,making the problem of under-investment in SMEs is more serious than the problem of over-investment.Debt financing is one of the important financing methods of enterprises.On the one hand,it can reduce the financing constraints faced by small and medium-sized enterprises and alleviate under-investment.On the other hand,it may increase the principal-agent problem of small and medium-sized enterprises,resulting in over-investment or under-investment.In our country,the source of debt financing is mainly bank borrowing and commercial credit,and the maturity of debt financing can be divided into long-term debt and short-term debt.Different sources,different maturity of debt financing on the impact of investment is also very complex.Therefore,Can debt financing alleviate under-investment in small and medium enterprises? Is the impact of different sources,different maturity debt financing on the under-investment the same? In the background of the special system of economic transformation,the financial ecological environment of different regions is unbalanced,and the financial ecological environment is an important external governance factor for the survival and development of enterprises.Will the difference of financial ecological environment impact the relationship between debt financing and under-investment in different regions?In order to solve the above problems,this paper studies the relationship between the debt,the source of debt and debt maturity of debt financing and under-investment,and then analyzes the relationship between the debt,the source of debt and debt maturity of debt financing and investment under different financial ecological environment,which are divided into different groups with good financial ecological environment and poor financial ecological environment.Through the empirical analysis,this paper finds that:(1)Debt financing can alleviate the under-investment of small and medium-sized enterprises.From the perspective of the source of debt financing,bank debt can alleviate under-investment,and commercial credit can't alleviate under-investment.From the perspective of the maturity of debt financing,long-term debt can't alleviate under-investment,and short-term debt can alleviate under-investment.(2)Through further research on the relationship between financial ecological environment,debt financing and under-investment,it is found that the function of debt financing alleviating under-investment is stronger in better financial ecological environment.From the perspective of the source of debt financing,the function of bank debt alleviating under-investment is stronger in better financial ecological environment,and commercial credit can't alleviate under-investment,no matter in the area of good financial ecological environment,or in the area of poor financial ecological environment.From the perspective of the maturity of debt financing,the function of short-term debt alleviating under-investment is stronger in better financial ecological environment,and the long-term debt can't alleviate under-investment,no matter in the area of good financial ecological environment,or in the area of poor financial ecological environment.