The Research On The Impact Of Debt Maturity Structure On Investment Behavior

How the debt level and the debt maturity impact on corporation's investment decisions, it is an important question of modern corporate finance. many western literatures indicated that agency problems inherent in interactions between shareholders debtholders and management,and associated with the level of leverage and its maturity composition, give rise to underinvestment or overinvestment incentives. Generally speaking ,the reasons of debt maturity structure fluctuating the scale of investment of the company are: First, shorting the debt maturity can reduce the insufficient of the investment which is leaded by the conflict between shareholders and creditors. Second, shorting the debt maturity can restrain the excessive investment which is leaded by shorting the debt maturity can managers. Third, long debt can important than short debt in the impact of asset substitution. The relation between debt maturity and investment maybe negative or positive.There are numerous achievements for the relationship between debt financing and investment by western scholars, but their researches take the mature market as a background.Regardless of stock market,governance structure, enterprise's historical background as well as current economic environment,The listed companies of China are different from western enterprises.Therefore, its conclusion is whether could explain the investment behavior in China's listed companies or not should be empirical studied.However, how is the relation between debt financing structures and investment? This paper is about the results of an empirical study on how debt maturity structure is related to listed manufacturing firms'fixed-asset investment behavior on 2004-2008 data, we make up a data model, which has several control variables such as capital structure, cash flow ratio and growth opportunities .the main findings of this paper are as follows:(1)in general, there is a positive relation between debt maturity structure and firms' investment.(2)when divide the sample into two groups based on the growth opportunities, we find after controlling for the effect of the overall level of leverage, that a higher percentage of long-term debt in total debt haven't reduce investment for firms with high growth opportunities, and the correlation between debt maturity and investment is significant positive for firms with low growth opportunities.(3)when divide the sample into two groups based on the state stake ratio, we find significant positive relation between debt maturity structure and firms'investment holds for State-controlled enterprises, but not for Non-state-controlled enterprises.