Research On The Impact Of Debt Financing On Investment Efficiency

Financing activities and investment activities are the two basic financial activities of enterprises.In the process of enterprise operation,they are come down in one continuous line,both in mutual independent and interdependent relationships,besides in interactive relationships.Debt financing is a core part of an enterprise's capital structure.It answers the question of the source of enterprise's funds.The investment activity mainly answers the question of capital utilization,and how to make use of the existing capital to produce and increase the value of the enterprise.In recent years,more and more enterprises not only focus on the their financing and investment activities,but also pay great attention to how to make effective investments with the company's funds,how to achieve the role of corporate governance through debt financing,so as to realize the maximization of enterprise value.In existent researching files,scholars only analyzes the effect of debt financing on the efficiency of enterprise investment from the perspective of debt maturity structure,industry factor or bank credit.However,they are less from the perspective of industrial life cycle.At the same time,because of the different property rights,different regions and different quality of corporate governance,the financing policies of enterprises will be different,so how do different financing strategies affect the efficiency of enterprises' investment? Do they have the same effect on the efficiency of an enterprise's investment? It is important to research the effect of debt financing on investment efficiency,to play the governance role of debt financing for improving investment efficiency and improving the inefficient investment behavior of enterprises,so as to maximize the value of enterprises.In this paper,based on the analysis of the listed company's investment and financing present situation of China,combined with relevant theoretical knowledge and data of listed companies from 2003 to 2015 as samples.From the perspective of property rights,regional perspective and corporate governance,used the method of comparative analysis,correlation analysis and regression analysis to study deeply on how debt financing affects investment efficiency.The empirical results show that,(1)on the basis of property rights,the short-term liabilities and commercial credit of non-state-owned enterprises can inhibit the inefficiency investment in the growth period.In the mature period,the debt financing,the long and short term liabilities and the commercial credit of the state-owned enterprises can inhibit the inefficiency investment,and the non-state-owned enterprises' bank borrowing can suppress the inefficiency investment more.In the recession period,the long-term debt of non-state-owned enterprises can lead to inefficiency investment,and the debt financing in the middle region can restrain the inefficiency investment in the period of growth.(2)From a regional perspective,debt financing in the central region can inhibit inefficiency investment during the growth period;in the mature period,debt financing,short-term liabilities,long-term liabilities and commercial credit in the central region can inhibit inefficiency investment,and bank loans in the eastern region can inhibit non efficient investment;in the recession,the western regional debt financing,bank borrowing and long-term liabilities lead to inefficient investment.(3)On the basis of corporate governance,debt financing,long-term debt,bank borrowing and commercial credit which the enterprises with high quality of corporate governance can inhibit inefficiency investment in the mature period.Debt financing,long-term liabilities and bank borrowing of low corporate governance enterprises lead to inefficiency investment;in the recession,The long-term debt which the enterprise with the high quality of corporate governance leads to inefficiency investment.Finally,based on the empirical analysis,we put forward suggestions on the role of industrial life cycle,the effect of property rights,the role of regional effects and the role of corporate governance.