Debt Heterogeneity And Insufficient Investment

The level of investment efficiency of an enterprise has a great impact on the overall economic development.Higher investment efficiency is conducive to the development of the enterprise and the optimal allocation of social and economic resources.Lower investment efficiency will result in waste of resources and social impact.The economy has a negative impact.Inefficient investment is common in Chinese enterprises,and underinvestment is an important aspect of enterprise inefficient investment.Researching and solving the problem of underinvestment in enterprises has important theoretical and practical significance.Studies have shown that the financing activities of enterprises,especially debt financing,are closely related to the investment efficiency of enterprises.However,most scholars currently focus on the overall characteristics of debt financing based on the assumption of debt homogeneity,and less discussion on debt heterogeneity.Although some articles have carried out preliminary research on it,because the earliest foreign literature on debt heterogeneity only discusses the heterogeneity of debt sources,domestic scholars generally ignore the impact of the debt maturity structure.Heterogeneity research is still relatively one-sided and requires more comprehensive attention;on the other hand,when domestic scholars study investment efficiency,they pay more attention to over-investment,not enough attention to under-invested enterprises,and under-investment This phenomenon is common in listed companies for a long time.This article focuses on the relationship between debt heterogeneity and underinvestment.It aims to broaden and refine the research on debt heterogeneity and provide some reference for solving the underinvestment behavior of enterprises.This paper uses the data from 2007-2018 of listed companies in Shanghai and Shenzhen as a research sample to quantify the degree of debt source heterogeneity and debt maturity heterogeneity.Empirical research methods are used to study the relationship between debt heterogeneity and underinvestment..Among them,the degree of heterogeneity of debt sources is calculated according to the national conditions of China,and is calculated from the proportion of financial borrowing,commercial credit,corporate bonds and other liabilities to total liabilities;the degree of heterogeneity of debt maturity is calculated based on the proportion of long-term debt and short-term debt;The absolute value of the residual error of Richardson(2006)model is adopted as the variable of the underinvestment degree of the enterprise.Based on the calculated variable values,this paper firstly demonstrates the relationship between the two types of debt heterogeneity and underinvestment,and studies the moderating role of financing constraints in the relationship between the two;In the paper,the sample companies are grouped according to the nature of property rights according to China's national conditions,and the relationship between the two types of debt heterogeneity and the degree of underinvestment of enterprises is studied separately.The study found:(1)The heterogeneity of debt sources and the maturity of debt maturities are both negatively related to the underinvestment of enterprises.It fully shows that the increase in the degree of debt heterogeneity can alleviate the underinvestment of enterprises: the increase in the degree of heterogeneity of debt sources brings more yuan of debt financing channels,provides more sufficient funds for enterprise investment,and multiple creditors Supervision can play a governance role in management's investment behavior and reduce agency problems;increased debt maturity heterogeneity means a more reasonable proportion of longterm and short-term debt,and a reasonable mix of long-and short-term debt with assets of different maturities can reduce capital mismatch.(2)In the case of enterprises subject to higher financing constraints,increasing the heterogeneity of debt sources has a stronger governance effect on enterprises' insufficient investment;however,the role of debt maturity heterogeneity has not been strengthened.This is because companies with a higher degree of financing constraints will have a positive effect on the lack of funds if they expand the source of debt financing,thereby alleviating underinvestment;while companies with low financing constraints,the reason for underinvestment is probably not due to lack of funds Then,the role of increasing debt financing channels is not obvious;while increasing the maturity of debt maturity is to make adjustments within the range of funds raised by enterprises,which is not enough to have a significant positive effect on the situation of underinvestment.Further research shows that the results of grouping tests according to the nature of property rights show that the increase in the degree of heterogeneity of debt sources can alleviate the underinvestment of private enterprises more than state-owned enterprises,while the heterogeneity of debt maturity is the opposite,and the role of state-owned enterprises is greater than private enterprises.This is because the problem of underinvestment faced by private enterprises is more because there are not enough sources of funds.Increasing the diversification of debt financing channels has a greater effect on private enterprises;and the reason for underinvestment in state-owned enterprises is more likely due to debt There is a mismatch between the maturity and the maturity of the assets,waste of funds has occurred,and increasing the degree of heterogeneity of the debt maturity has a greater effect on stateowned enterprises.In this paper,the main conclusions are tested for robustness regression and verified.Based on the regression results,this article makes the following recommendations:(1)Enterprises should broaden debt financing channels and use multiple types of debt;optimize the debt maturity structure and rationally match long-term and short-term liabilities;and select the appropriate debt financing strategy based on the nature of its own property rights.(2)The government should improve relevant laws and regulations,reduce the difficulty of financing for enterprises,make full use of various debt financing channels,reduce the insufficient investment of enterprises,and improve the investment efficiency of enterprises.