Credit Policy,Excess Bank Loans And Investment Efficiency

Investment activities are one of the main driving forces of national economic growth,as well as one of the indispensable components of enterprise's financial activities,and the driving factor for enterprises to create value and wealth.Investment efficiency determines not only the survival of an enterprise but whether social capital achieves optimal allocation.The investment efficiency of an enterprise is not only closely related to its future cash flow and other financial and management factors but also constitutes the microscopic foundation of the national macro-economy,the change of the national macro-economic environment will inevitably lead to an impact on the economic activities of enterprises.The credit policy affects the investment activities of enterprises by affecting the credit supply and the financing constraints of enterprises.Bank credit is one of the most important external financing channels for Chinese enterprises,and excess bank loans are the redundant loans for enterprises that exceed the optimal bank loans,the change of credit policies and the condition of excess bank loans will influence the investment efficiency of the enterprises.Therefore,it is of theoretical and practical significance to study and analyze the relationship between credit policies,excess bank loans and investment efficiency of the enterprises.At present,few scholars have directly studied the relationship between credit policy and investment efficiency of enterprises,and yet no scholars have combined credit policies,excess bank loans and investment efficiency of enterprises to conduct research.Therefore,the research in this paper also supplements the research in this area.In this paper,China's A-share listed companies from 2011 to 2017 were taken as research samples to study and analyze the relationship between credit policies,excessive bank loans and investment efficiency of enterprises.By empirical analysis,the following viewpoints put forward in this paper are confirmed:First,the expansion of credit policies,such as the increase of credit scale and the decrease of capital adequacy ratio,will make the investment efficiency of enterprises lower.Second,compared with enterprises without excess bank loans,enterprises with excess bank loans have lower investment efficiency.Third,the tightening of credit policies,such as shrinking credit scale or increasing capital adequacy ratio,will weaken the negative correlation between excess bank loans and investment efficiency of enterprises.