An Empirical Study On The Impact Of Information Asymmetry And Debt Financing On Inefficient Investment

Investment,financing and dividend distribution are the three pillars of a company’s financial activities,and the formulation of reasonable and effective investment decisions is a top priority.At present,in China’s capital market,the phenomenon of non-efficiency investment is very common,mainly in the form of over-investment and under-investment.Both have a great negative impact on corporate investment efficiency and corporate value.Therefore,this paper analyzes the influencing factors of non-efficiency investment phenomenon in enterprises,and finds effective ways to restrain the non-efficiency investment of enterprises,which has important theoretical and practical significance for the future development of enterprises.Firstly,on the basis of reading a large number of domestic and foreign literatures and related theories,the concept definition of information asymmetry,debt financing and non-efficiency investment is defined.The theory of information asymmetry,principal-agent and free cash flow hypothesis are expounded.The research hypothesis lays the theoretical foundation.Secondly,based on the relevant literature and theory,this paper puts forward the research hypothesis and constructs the mathematical model.Thirdly,this paper uses the financial data of 1 014 listed companies of Shanghai and Shenzhen A-shares in 2012-2017 as a research sample,uses correlation analysis and multiple linear regression analysis to test the impact of information asymmetry and debt financing on non-efficiency investment.The results show that the existence of information asymmetry will aggravate the inefficient investment of enterprises;debt financing has a governance effect on non-efficiency investment;information asymmetry will weaken the governance effect of commercial credit,and information asymmetry will strengthen the governance effect of bank loans.In order to ensure the reliability of the conclusion,the test results are tested for robustness.Finally,combined with the status of China’s capital market and the results of empirical analysis,relevant policy recommendations were put forward.Specifically,it includes: deepening the reform of state-owned banks,giving play to the role of bank governance;constructing a reasonable capital structure,giving full play to the governance effectiveness of commercial credit;improving internal and external supervision of enterprises,establishing an effective,incentive and restraint mechanism,raising investor of risking awareness.The possible innovation of this paper is to place information asymmetry,debt financing and non-efficiency investment in a unified research framework for research.In the research process,this paper considers the heterogeneity of debt,takes the different sources of debts structure as the entry point,compares and analyzes the difference of the impact of different sources of debts on the inefficient investment of enterprises under information asymmetry.