Institutional Investors, Debt Structure Maturity And Irrational Investment—empirical Evidence On Financial Ecological Environment

Academic circle and business circle have always focused on the role of institutional investors and debt maturity structure in recent years. It is much worthy to discuss how institutional investors and debt maturity structure influence the irrational investment, and enterprise investment efficiency which is shown finally. Actually, there is almost no literature to have discussed it on the different financial ecological environment, which indicates the vital significance in this dissertation.The paper exams the influence of institutional investors and debt maturity structure on the irrational investment, selecting all the listed companies of A-share market from 2010 to 2013 as the research sample, measuring the irrational investment by drawing from the Richardson Models, applying ordinary least squares(OLS) to investigate the irrational investment, analyzing the under-investment and over-investment with the method of quantile regression(QR), meanwhile adopting the LOGIT model to carrying out the robust analysis.The empirical results show:(1) On the institutional investors level, institutional investors as a whole inhibit the listes companies’ irrational investment(over-investment and under-investment), but further research results have shown the effect of institutional ownership on irrational investment(over-investment) presents the character of nonlinearity, to be specific, and there is positive U relationship between institutional ownership and irrational investment, over-investment, separately. Nevertheless, there exists a significantly positive correlation between institutional ownership and under-investment, that is to say, the higher the institutional ownership is, the more serious the phenomenon of under-investment is.(2) On the debt maturity structure level, the gross debt plays an accelerating role in under-investment, and has an inhibiting effect on over-investment, which reveals that the debt increases bankcrupcy risk, leading to intensify the conflict of shareholders and creditors, so that it promotes the behavior of under-investment and inhibits the behavior of over-investment in listed companies. Short-term debt has an inhibitory action on irrational investment,(over-investment and under-investment), and long-term debt has a promotional role in irrational investment(over-investment and under-investment).(3) On the interaction level, there indeed indicates the interaction between the institutional investor and debt maturity structure—short-term debt significantly strengthening the supervision effect of institutional investor on the behavior of over-investment, but the long-term debt, significantly weakening that effect.(4) On the financial ecological environment level, the relationship of financial ecological environment and the enterprise’s irrational investment significantly presents negative correlation, which means the better financial ecological environment develops in an area, the more difficult the manager, in that area, makes the decision of irrational investment.Considering the empirical conclusion and analysis, some corresponding policies, suggestions and prospect to the future research will be made in the dissertation.