An Empirical Study On The Relationship Among "Short-term Debt For Long-term Investment",Internal Control And Corporate Performance

Nowadays,difficult and expensive financing has become a major problem on the development road of Chinese enterprises.In order to have enough funds to invest in long-term business,most enterprises prefer the investment and financing model of"short-term debt for long-term investment".Although "short-term debt for long-term investment" can relieve the capital turnover pressure of enterprises in a short period of time,once the long-term project income cannot bear the repayment of the short-term loan principal and interest,enterprises will face serious debt risks,which will further inhibit the growth of enterprise value.Therefore,how to alleviate the "short-term debt for long-term investment",for enterprises is very important.Internal control runs through the entire production and operation process of an enterprise,which can effectively supervise the maturity structure of assets and debts and influence the investment decisions of the management.So whether internal control can also affect the rationality of enterprise investment and financing policy?And reduce the mismatch degree of investment and financing period of enterprises,prevent enterprises from"short-term debt for long-term investment" behavior,and promote the economic development of enterprises.In this paper,empirical research is carried out on the basis of literature review and theoretical analysis.This article first through to the domestic and foreign relevant "short-term debt for long-term investment",internal control and corporate performance of the relevant literature,and from the term matching theory,principal-agent theory and information asymmetry theory and related economics theory this paper expounds the importance of asset and debt maturity matching and the mechanism of the internal control for alleviating period mismatch.Secondly,based on the literature and the analysis of relevant economic theories,the research hypothesis of this paper is put forward,and the regression model among "short-term debt for long-term investment",internal control and enterprise performance is built.Finally,descriptive statistics,correlation test and Hausmann test are carried out on the sample data,and the fixed effect model is selected to carry out the empirical research.Furthermore,the relationship among the five elements of enterprise heterogeneity,internal control and enterprise risk is further studied in depth.Based on the panel data of China’s non-financial listed companies from 2008 to 2018 for the study sample,this paper conducts an empirical study on the relationship between "short-term debt for long-term investment",internal control and enterprise performance,and the conclusions are as follows:(1)"Short-term debt for long-term investment" has a negative impact on corporate performance,that is,although "shortterm debt for long-term investment" solves the problem of short-term financing,it is not conducive to the improvement of corporate performance,but will have a negative effect.(2)Internal control has a positive promoting effect on corporate performance,and the improvement of internal control quality is conducive to the long-term development of enterprises.(3)Internal control can restrain the increase of "short-term debt for long-term investment" and weaken the negative impact of"short-term debt for long-term investment" on corporate performance.Therefore,enterprises can alleviate the problem of "short-term debt for long-term investment" and optimize the maturity structure of assets and debts by improving the quality of internal control.(4)Further research finds that the five elements of internal control have different influences on"shorrt-term debt for long-term investment" and enterprise performance,and the interaction term of each element and "short-term debt for long-term investment" has different influences on enterprise performance,which is related to the characteristics and functions of each element.In addition,"short-term debt for long-term investment"will increase the business risk,while internal control will reduce the business risk,and weaken the impact of "short-term debt for long-term investment" on the business risk.Finally,according to the research results,this paper also puts forward relevant suggestions to managers,investors,governments and regulatory authorities from different perspectives.This paper enriches the existing literature on "short-term debt for long-term investment" and the impact of internal control of corporate performance,and for the study of "short-term debt for long-term investment" provides a different perspective,can help enterprises to reduce the period mismatch of assets and liabilities to take corresponding measures,the development of enterprise and financial market provides sufficient theoretical and experimental proof.