Research On The Impact Of Corporate Debt Heterogeneity On Inefficient Investment

Manufacturing industry reflects the level of national productivity and provides a display of social resources.As a national leading industry,China’s manufacturing industry has played an important role in adapting to the needs of Chinese people and promoting the socialist modernization process.In order to promote the development and growth of manufacturing enterprises and produce more value and wealth,scientific and reasonable capital investment and resource allocation are needed.However,limited by the increase of labor,site and other costs,the current manufacturing enterprises are trapped in inefficient situation of overinvestment or underinvestment.At present,a part of the researchers found that the main factors that influence the efficiency of investment is the debt financing structure of companies,but their mostly regard total liabilities or bank loan as the debt financing structure,scarcely any attention in heterogeneous sources and maturities for the debts,let alone the further discussion.Based on the above situation,this dissertation tries to select Chinese listed manufacturing companies as samples to explore the impact of debt heterogeneity on inefficient investment.First of all,this dissertation summarizes the literatures related to corporate debt heterogeneity and inefficient investment.Secondly,choosing relevant theoretical basis to build research paradigm,and put forward research hypothesis from three directions of scale,sources and maturities.Then the inefficient investment level is measured after status quo of heterogeneity for the debts of manufacturing listed companies analyzed.In the end,using data of manufacturing companies listed in Shanghai and Shenzhen as samples,to construct a heterogeneous debt model and conduct grouped empirical regression,furthermore under different financing constraints,test again how will relationships between debt heterogeneity and inefficient investment change? The conclusions are as follows:(1)The overall debt scale of manufacturing enterprises in China can effectively restrain over-investment and under-investment;(2)The ratio of commercial credit can not effectively restrain investment overinvestment and underinvestment.Financial debt ratio can alleviate underinvestment,but also promote enterprises to invest too much;(3)Long-term debt ratios will exacerbate corporate overinvestment.Short-term debt ratio can effectively restrain overinvestment and underinvestment;(4)With high financing constraints,corporate debt scale has a more significant restraining effect on overinvestment and underinvestment,financial debt ratio has a more significant promoting effect on overinvestment,and long-term debt ratio has a more significant promoting effect on underinvestment.With low financing constraints,the long-term debt ratio has a stronger role in promoting overinvestment,and the financial debt ratio has a stronger role in alleviating underinvestment.According to conclusions,some suggestions are put forward :(1)enterprises should make proper use of financing to improve their investment efficiency through restraint and governance of debt.And governments and financial institutions should improve the financing constraint environment;(2)At the same time that enterprises improve the investment efficiency of financial debt,the government should also introduce a thorough bankruptcy law as soon as possible to restrain the default of commercial credit,so as to its due function of debt management can be considerably exerted;(3)Enterprises should optimize the debt maturity structure reasonably,and financial institutions should also adjust the loan ratio of long and short term debt of enterprises appropriately.