Debt Default Risk,Debt Heterogeneity And Investment Efficiency

In recent years,the global economic has experienced downturn.Due to the decline in profitability and increasingly severe financing environment,the number and scale of corporate debt defaults have been increasing year by year.This phenomena has attracted extensive attention from the practical and academic circles and various problems brought about by debt defaults have also become prominent,which has become a common concern of all sectors of society.In the early stage,the academic circle mainly focused on the research of the influencing factors leading to the occurrence of debt default and then predicted the possibility of debt default.In recent years,scholars have begun to pay attention to the economic consequences of material debt default events,such as R&D,audit fees and earnings management.However,they have not paid enough attention to the potential default risk before the event.Therefore,this paper is to study the impact of debt default risk on enterprise investment efficiency and further explore which factors will have an impact on this effect,as well as the specific mechanism of debt default risk on investment efficiency.The main contents of this paper are as follows: Firstly,review the relevant literature in the past and comprehensively analyze the research related to debt default risk and investment efficiency.Then come to the theoretical analysis,as the theory mentioned before analyzes the relationship between the debt default risk and the investment efficiency.Then establish regression model on the basis of the hypothesis in front,using domestic listed companies between 2009 to 2018 as samples,thro ugh the CSMAR database and the National University of Singapore Credit Risk Management Institute(RMI)Credit Research Initiative(CRI)database to collect the required data,using STATA15.0 as a measurement tool to process and analyze the data.Finally,the empirical results are analyzed to get the research conclusions of this paper and the policy recommendations are summarized.This paper takes all domestic non-ST listed companies from 2009 to 2018 as research sample and conducts an empirical study on the relationship between the company's debt default risk and investment efficiency.The study found that the risk of debt default can improve the investment efficiency of enterprises,especially for private enterprises,both the heterogeneity of debt and the level of debt burden can play a moderating role in the positive effect of debt default risk.After a series of robustness tests,the result is still significant.Further research shows that the risk of debt default mainly reduces the degree of underinvestment of enterprises and debt default risk plays a role in corporate governance by reducing the internal agency cost of enterprises.This study theoretically enriched the study of investment efficiency and debt governance,which studies the economic consequences of a debt default risk from the perspective of creditors supervision and reveals the transmission mechanism of debt default risk.This research creates a new aspect to study the economic consequences of debt default.At the same time,it helps enterprises to improve their investment efficiency practically,guiding the company's investment be havior back to the right track.It also helps creditor to play the role of supervision by improving creditor's awareness of supervision,so as to better protect the rights and interests of investors,promote the healthy development of Chinese enterprises.