The Research Of Corporate Investment Behavior On The Impact Of Issuing Corporate Bond By Listed Company

As a newly issued security by listed company, Corporate Bond needs to show its capacity for the development of a company. The study of Corporate Bond contains debt structure theories, debt maturity theories and leverage structure management. Here, we anxious about whether issuing a corporate bond could affect the company’s non-efficient investment behavior? This article pays its attention on Corporate Bond’s master through empirical tests.Articles related make it clear that we can demonstrate those relations between corporate bond and non-efficient investment by listed company’s annual financial data. From domestic securities market and A share market, we pick up125listed company who also have had corporate bond listed, their annual financial data dated form2005to2010generates681sets of testing data. Those sets of date have been divided as before and after of corporate bonds which had issued. There are four analysis models with variables such like leverage, long-term liability and short-term liability, the newly long-term debt and the newly short-term debt, corporate bonds and so on, except for the non-efficient investment model inherited form Richardson(2006). After the conclusion of both overinvestment and underinvestment exist side by side, we make further study of the relationship between debt financing and non-efficient investment constraints. Empirical tests found negative correlation between long-term debt financing and short-term debt financing, also, the long-term debt inhibition is more evident. When we object the newly long-term liabilities and newly short-term liabilities to the model, the negative correlation is more intensive, the fitness of this model gives us obvious evidence that long-term debt financing is much more effective. On the other hand, as a long-term debt financing, corporate bonds also creates inhibition to the non-efficient investment. In view of the effect of long-term debt financing of non-efficiency investment constraints, the development of corporate bonds can help to improve the efficiency of corporate investment, and to promote efficient investment.