Research On Structure Of Corporate Debt And The Peer Effect Of Corporate Investment

Since the reform and opening-up,Chinese economy has developed at a high speed.With the rapid development of the economy,such problems have begun.In the market,investment chaos has begun to take place.In recent years,the development of shared bicycles and the rise of P2 P online loans have exposed many problems in the flow of funds.When the development model is not yet clear,there is a huge influx of capital,resulting in great resources are wasted.The influx of capital into the virtual economy has led to the stagnation of capital,which has caused great damage to the good development of the economy and may even lead to systemic risks.On the other hand,after the industrial revolution,social production efficiency has been greatly improved,and the organizational form of enterprises has gradually developed into a modern enterprise organization form in which management rights and ownership are separated.This is followed by conflicts between the operator and the owner,shareholders and creditors.Managers are easy to self-interest when they are inconsistent with the interests of the owners.Through excessive investment,they can enjoy more in-service consumption or have lazy motives.The proposal of the high-level echelon theory points out that the manager is not completely rational,and it has limitations both in the macro environment and in its own reasons.At the same time,scholars began to think about the industry peer effects.In recent years,the industry peer effects had become a hot issue in academic circles.The discussion from the existence of the industry peer effects to the mechanism of the peer effect has become a topic worthy of study.One of the most important theories about the mechanism of peer effects is the theory of social learning.Social learning theory divides the information obtained by managers into private information and public information.When managers make decisions,they will be affected by private information and public information.Public information is the signal of decision-making transmitted by similar enterprises in the same kind of decision-making.When enterprises choose public information for decision-making,the peer behavior will occur.Outing of their poor abilities,on-the-job consumption,reputational concerns,and even the motives of lazy,managers will rely on the use of public information,and opt out of private information that requires more effort to obtain.Based on the dual agent problem under the principal-agent problem and the mechanism of the peer effect,this paper discussed the impact of corporate debt structure on the peer effects in the enterprise investment.The results of this paper show that the heavier the short-term debt of the enterprise,the more it can suppress the peer effects in the enterprise investment,and the performance is more obvious in those enterprises whose investment level is lower than the industry investment level..As one of the indicators of corporate credit ratio,long-term borrowing promotes the peer effects in the investment enterprises whose investment level is lower than the industry level to a certain extent.The innovation of this paper lies in:First,the principal-agent problem is combined with the mechanism of the industry peer effects,and discusses the impact of the corporate debt structure on the peer effect of the enterprise investment.Previous research on industry peer effects has focused on the manager itself,without considering the impact that dual agent issues may have on management peer behavior..Secondly,the impact of the term structure of debt and the bank loan of the main loan sources of enterprises on the peer effects of corporate investment is considered,which provides a direction for thinking about how to reduce the peer effects through debt structure.Third,the attitudes of different groups in the industry to the level of investment in the industry were considered separately.There is no general way to improve the cohort effect in the industry investment for the whole group,but to consider different groups of companies with different investment levels to give different solutions.