The Research Of The Impact Of Bond Financing By Listed Companies On Inefficient Investment

Financing and investment have always been the focus of financial management.In recent years,it has been mentioned repeatedly at major national conferences that we should raise the proportion of direct finance,which indicates the direction for the development of China’s capital market in the new era.In 2007,the issuance of a pilot scheme for corporate bond issuance provided a new opportunity for the financing decisions of listed companies.In 2015,the introduction of new corporate bond management methods further promoted the development of corporate bonds in China.The researches of many scholars show that the phenomenon of non-efficiency investment is widespread in our country.Because of this,this paper mainly discusses the effect of the issuance of corporate bonds on the ineffective investment behavior of listed companies.This paper is divided into seven chapters,and the first two chapters briefly introduce the background of topic selection,research significance and relevant domestic and foreign literatures.The third chapter defines the key words of the paper and theories about financing and investment.The fourth chapter introduces the development and the present situation of corporate bond.The former focuses on the time axis and various important documents.The latter mainly involves the contents of the bond itself and the issuers.The fifth and sixth chapters are the core chapters of this article.Firstly,the life cycle of the sample enterprises is divided according to the cash flow group,and the investment situation of the samples is analyzed quantitatively by the Richardson model.Once again,constructing models to examine the governance effects of corporate bonds on non-efficiency investments of different life cycles,and takes short-term debts and long-term debts as contrasts.The research shows that enterprises in the period of growth and recession are mainly underinvestment,while mature enterprises show obvious tendency of overinvestment.Corporate bonds fail to play the role of debt management for overinvestment,but can effectively alleviate underinvestment.In details,corporate bonds increase the level of overinvestment in mature enterprises,but can significantly improve the situation of underinvestment of corporates in growth,mature and recession period.It was found in further study that the increase of free cash flow by corporate bond issuance worsen the over-investment situation of mature models and improve the under-investment situation of growing,mature and recession samples which is caused by shortage of free cash flow.The innovation point of this paper: this paper takes the enterprise life cycle as the research perspective,and analyzes the non-efficiency investment status of enterprises in the growth,maturity and decline phases from the dynamic level.When discussing the governance role of corporate bonds on ineffective investment,it not only studies the whole samples,but also pay attention to each life cycles to make the conclusion more specific and targeted.