A Study Of The Impact Of Debt Financing On Investment Efficiency From The Angle Of Life Cycle

The development of an enterprise needs to go through four stages.At the beginning,it is in the initial stage of entrepreneurship.After constant exploration and accumulation of experience,it gradually enlarges the market and gradually enters the growth stage.When the market share reaches a certain level,the enterprise becomes larger and larger,its organizational structure and management mechanism tends to be perfect,and the whole enterprise is in a relatively stable state,which indicates that the enterprise has entered a mature stage.If enterprises cannot innovate or maintain their existing market share,they will gradually enter a recession and eventually be eliminated by the market.Enterprises in different periods will show different characteristics,but no matter what period they are in,they cannot do without two basic economic activities: financing and investment.Financing needs to consider many issues,including the size of financing demand,financing term structure,financing sources and so on.The same is true of investment.Under the principal-agent theory,the operator's goal is to maximize his own interests,so there will be over-investment.However,contracts and restrictive clauses between creditors and debtors make shareholders and operators abandon projects with net present value greater than zero,resulting in under investment.Therefore,based on the life cycle theory,this paper studies and analyses the impact of debt financing on investment efficiency in different life cycle stages.This paper chooses A-share listed companies of Chinese manufacturing enterprises from 2012 to 2017 as the research object.Regression residuals in Richardson model are used to measure investment efficiency,and then the life cycle of enterprises is divided into growth period,maturity period and recession period by cash flow portfolio method.On this basis,a multiple linear regression model is constructed from three aspects: debt scale,debt maturity and debt source to study the impact on investment efficiency.Empirical research shows that debt scale can restrain inefficient investment in both growth and maturity,and lead to inefficient investment in recession.Forshort-term debt,it has the same effect as debt size.But long-term debt is quite different Long-term debt in growth and recession will lead to inefficient investment,while long-term debt in maturity cannot effectively restrain inefficient investment.Finally,for bank deposits and commercial credit,in growth and recession,bank deposits lead to inefficient investment,and in maturity they can effectively restrain inefficient investment.Business credit in growth period cannot restrain inefficient investment,in mature period it can restrain it effectively,and in recession period it leads to inefficient investment.