Research On The Impact Of Listed Companies' Issuance Of Medium-term Notes On Their Investment Efficiency

The bond market is an important part of China's financial market.But the bond market has always been less concerned than the stock market.In recent years,the bond market has developed rapidly,but the risk of debt default has continued to increase.As a debt financing tool,the medium-term bill has been introduced into China for 10 years and has developed rapidly.It has become a new force in China's bond market along with commercial paper.Enterprise investment is an important part of corporate governance,and it is related to the sustainable operation and long-term development of the company.In an ideal market,corporate investment is always efficient,but in a real market,corporate investment is more or less over-investment and under-investment.Are these phenomena caused by debt financing? What is the impact of medium-term notes as a form of debt financing for enterprises on corporate investment efficiency? Studying this issue will help listed companies to clarify the impact of issuing mediumterm notes on investment efficiency,thereby helping companies to allocate debt and promote efficient use of resources.At the same time help companies make better investment decisions.On the macro level,it is able to promote the stable development of the bond market.The focus of this paper is to study the impact of the issue of medium-term notes issued by listed companies on the efficiency of corporate investment.This paper first analyzes the background of the issuance of medium-term notes and the status of issuance,and then compares the medium-term notes with other corporate debt financing instruments to summarize the advantages of medium-term notes.Then the paper analyzes the theory.This paper firstly defines the enterprise investment efficiency and the theory of corporate financing structure.Through these two theories,it analyzes the impact of the issuance of medium-term notes on the investment efficiency of enterprises.After analyzing these effects in the theoretical part,this paper enters the empirical study.The empirical analysis of this paper is mainly divided into three parts.Firstly,the listed companies that have issued the same industry as the medium-term notes but have not been issued are selected as a comparative study.After studying the relationship between the issuance of medium-term notes and the degree of non-efficiency investment,the revised version of Richardson(2006)The model finds the investment efficiency of listed companies that issue medium-term notes.The investment efficiency is expressed by the residual after the return.The positive is excessive investment and the negative is insufficient investment.Then the residual value is used as the explanatory variable to analyze the regression rate of the medium-term bill financing rate of the enterprise.Then find out the specific relationship between the issuance of medium-term notes and the efficiency of corporate investment;this paper further analyzes whether the stateowned holdings of enterprises will affect the relationship.At the same time,this paper also analyzes whether the different corporate debt main body ratings will affect the relationship between medium-term note issuance and corporate investment efficiency.Finally,the paper obtains a new explanatory variable by replacing the variables in the Richardson model,and tests the robustness of the previous empirical evidence.The empirical results show that:(1)The issuance of medium-term notes by listed companies in China has inhibited non-efficiency investment to a certain extent.(2)There are many under-investment cases in listed companies that issue medium-term notes in China.(3)The issuance of medium-term notes by listed companies in China has a mitigating effect on the insufficient investment of enterprises,and has no effect on excessive investment.(4)The issuance of medium-term notes by state-controlled listed companies not only did not inhibit their non-efficiency investment,but also promoted excessive investment by enterprises to a certain extent,and had no significant impact on the insufficient investment of enterprises.For non-state-owned holding companies,the issuance of medium-term notes can alleviate the lack of investment,but has no impact on excessive investment.(5)The insufficient investment in the issuance of medium-term notes by enterprises with debt entities of AA+ and above has a certain degree of mitigation.The issuance of medium-term notes by enterprises below AA+ has no significant impact on corporate investment efficiency.After drawing the above results,this paper puts forward relevant suggestions.From a macro perspective,it is recommended to continuously deepen the reform of the bond market and regulatory mechanisms,continuously improve laws and regulations,and standardize credit rating mechanisms and rating agencies.Microscopically,enterprises should strengthen information disclosure,strengthen internal governance capabilities,improve camera management capabilities,rationally use debts,effectively use medium-term notes,and rationally use the reverse inquiry function of medium-term notes.