| Recently,the investment efficiency of listed companies in China is generally not high,and companies excess its capacity in some industries,the environment and resources can no longer support the extensive development model driven by investment.In 2017,General Secretary Xi Jinping stated in the report of the 19 th National Congress that the primary task of “three to one,one reduction and one supplement” is to resolve excess capacity.Enterprise investment determines the company’s future cash flow and profitability,and forms the basis for the growth of micro-subjects.Solving the problem of inefficient investment by enterprises is essential to resolve excess capacity.Under the background of China’s economy entering the "new normal",the expansion of investment scale has insufficient effect on China’s national economic growth.Suppressing excessive investment and al Leviating insufficient investment are important practical issues that need to be resolved in the transformation of China’s economic development model.Domestic and foreign academic research on corporate investment has achieved rich results.However,in the past research,most financial scholars explored from the micro-enterprise level,including capital structure,enterprise scale,and pay less attention to the macro factors affecting the inefficient investment of enterprises.Secondly,scholars mainly discuss the relationship between debt financing and corporate investment behavior from the perspective of total debt.Enterprises should have appropriate financing scales to match the optimal investment scale,while existing research rarely pays attention to excess debt financing,that is,how excessive bank loans affect the investment efficiency of enterprises.Thirdly,scholars mainly examine the relationship between credit policy and enterprise investment and financing through the credit channel of monetary policy.Few articles directly use credit supply as a research perspective to examine its impact on corporate financing structure deviation;or pay attention to how credit supply influencing economic cycle and economic fluctuations,but is less involved in inssues on investment efficiency.Corporate investment is affected by financing,and the scale and structure of corporate financing are limited by macro-Level policies.The central bank’s macro-control policies on currency and credit mainly have two major categories.The first category affects the total amount of money and credit,by shrinking or loosening the reserve of the banking system and expanding or reducing the currency multiplier;the other is affecting the credit structure,by adjusting the allocation of funds in the credit market.Credit supply has different potential drivers for corporate finance with different characteristics.The micro-effect of credit supply policy orientation and the status quo of micro-economic entity investment and financing decisions are worth studying because it determines the vitality and micro-foundation of innovation,which determines the sustainability of economic supply and affects the future direction and development of China’s economy.Therefore,this paper attempts to explore the causes of excess bank borrowing,and from the perspectives of theory,reality and empirical research,to explore the mechanism and path of the impact of excess bank borrowing credit supply on micro-enterprise inefficient investment.Then explores the impact of excess bank borrowing on corporate inefficient investment with enterprise heterogeneity factors(including enterprise nature factors,internal control level factors,industry factors)and external macro environment,including marketization level,monetary policy and macro operation,and proposes countermeasures to improve corporate investment efficiency.The first part(Chapter 1-2)mainly defines the main concepts including inefficient investment and excess bank borrowing,and clarifies the scope of the full text.On the basis of combing relevant literatures,from the theory of financing constraint,principal-agent theory and information asymmetry theory,the paper analyzes the impact of theoretical basis on how credit supply influences corporate financing and investment.The second part(Chapter 3)firstly analyzes the impact of credit supply,credit rationing and alternative financing on excess bank loans.Secondary,from the perspective of the effect of restraint effect,the paper analyzes the excess bank borrowing on enterprise inefficient investment,and further adds external environmental factors to analyze the degree of marketization,monetary policy and macroeconomic operation.The impact of investment provides theoretical support for the research ideas and variable selection of the subsequent empirical part.The third part(Chapter 4-6)is empirical research.On the basis of the theoretical analysis in Chapter 3,empirical tests are carried out in three chapters.One is to examine the impact of excess bank borrowings on inefficient investment of enterprises.Excess bank borrowings are divided into long-term excess bank borrowings and short-term excess bank borrowings,and inefficient investments are classified into overinvestment and underinvestment tests.The second is to examine the impact of enterprise heterogeneity factors.The impact of excess bank borrowings on enterprise inefficient investment is examined from the perspective of the nature of the enterprise,the level of internal control,and the influence of industry factors.The third is to examine the impact of excess bank borrowings on corporate inefficient investments under the constraints of the external environment.Construct external environmental constraints from marketization,monetary policy and macroeconomic operation.Through three chapters of empirical testing,it provides micro-level empirical evidence for solving inefficient investment problemsThe fourth part(Chapter 7)is conclusions,revelations and prospects.The conclusions of this paper are mainly reflected in the following four aspects: Firstly,the liquidity effect indicates that credit supply can affect the ability of enterprises to generate cash flow through the production and sales cycle.The debt governance effect shows that under the influence of credit supply,the change of credit supply will directly affect the difficulty degree,quantity and term structure of enterprises to obtain debt,thus affecting the incentive and restraint role of debt contract.Secondly,both state-owned enterprises and non-state-owned enterprises have excessive bank loans to a certain extent.Both state-owned enterprises and non-state-owned enterprises have problems of over-investment and under-investment to a certain extent.Thirdly,excessive bank borrowing will aggravate the over-investment of enterprises,and can also alleviate the under-investment of enterprises to a certain extent.Compared with non-state-owned enterprises,state-owned enterprises are more affected by excessive bank borrowing and overinvestment.Compared with non-state-owned enterprises,state-owned enterprises are less affected by excessive bank loans to underinvestment;from the perspective of internal control,compared with companies with higher internal control levels,the impact of excess bank loans on non-efficient investment is more prominent in companies with lower levels.Compared with companies with higher internal control levels,the impact of excess bank borrowing on overinvestment is more pronounced in companies with lower internal control levels.Compared with companies with low internal control levels,the impact of excess bank borrowing on underinvestment is more pronounced among companies with higher internal control levels.From the perspective of industry,the impact of excess bank borrowings on inefficient investment of enterprises is that real estate companies are most affected,and wholesale and retail industries are least affected.Fourthly,the degree of marketization can weaken the negative impact of short-term excess bank loans on non-efficiency investment of enterprises,and can enhance the mitigation effect of long-term excess bank loans on corporate investment,but the effect of long-term excess bank loans on excessive investment is not significant.Monetary policy easing will aggravate the negative impact of short-term excess bank borrowing and long-term excess bank borrowing on over-investment,and will also increase the positive impact of short-term excess bank borrowing and long-term excess bank borrowing on underinvestment.When the macro economy rises,long-term excess bank borrowing will exacerbate excessive investment by enterprises,which will weaken the investment shortage of enterprises.Short-term excess bank loans have limited impact on under-investment.The possible innovations in this paper are mainly reflected in the following three aspects:Firstly,explore the macro-influencing factors of corporate financing from the perspective of the interaction between macroeconomic policies and micro-firm behaviors,and analyze the impact of credit supply,credit rationing,and alternative financing methods on corporate financing.Secondly,from the perspective of excess bank borrowing,combined with China’s institutional background,it deeply studies the impact of high financial leverage on the inefficient investment of enterprises,and establishing an analytical framework for the impact of excess bank borrowing on corporate inefficient investment and the external environment constraints,and supplements the existing research on inefficient investment.Thirdly,the paper analyzes the liquidity effect of credit supply on corporate financing from the production and sales cycle of enterprises;adds excess bank loan elements in the mathematical model of debt contract,and analyzes the impact of excess bank loan on debt governance. |
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