Free Cash Flow,Debt Governance And Investment Efficiency

In recent years,the discussion and debate of the real estate has never stopped by the real estate development caused by the "ghost town",the housing vacancy rate is also hot repeatedly on the news headlines,the research on the real estate has become a hot topic in academic research.China's real estate industry is a capital intensive industry,the development and construction of the project mainly rely on external debt financing,debt financing will have an important impact on the investment in the development of enterprises.On the impact of debt financing on investment efficiency,domestic and foreign scholars will focus on one aspect of the overall level of debt financing,sources of debt or debt maturity structure.Based on the summary of previous research results,the 2008-2014 Chinese real estate listing Corporation experience data as the study sample,the free cash flow hypothesis,debt governance effect as the theoretical basis,using the method of combining theory and practice,the test of China's real estate listing Corporation,the existence of non efficiency investment behavior,further verification whether the inefficient investment of free cash flow to the governance effect of the overall debt,debt source and maturity structure on investment efficiency.This study is mainly divided into 6 parts,the first part is the introduction part.This paper is mainly on the research background,research significance,research framework,research methods and possible innovations are combing.The second part is the literature review.Mainly for the domestic and foreign literature review from two aspects,one is the free cash flow sensitivity of the efficiency of investment,mainly including the connotation,the inefficient investment of non efficiency investment measure and the cause of inefficient investment,from the three aspects of domestic and foreign literature;on the other hand is a relationship debt governance and investment efficiency,the debt governance divided into three aspects: the general level of debt,debt and debt maturity structure,were collected and summarized from the three aspects of the related literature at home and abroad.The third part is theoretical analysis and research hypothesis.The basic theory includes the free cash flow hypothesis and debt governance theory,understanding of relevant theories and literature review based on the foundation,combined with the actual situation of China's real estate industry,put forward relevant research hypotheses.The fourth part is the research design.Mainly includes two aspects of sample selection and data sources,model design and related variables.The design of model design including the selection of measurement model of the efficiency of investment and debt governance model,the design of debt governance model from the three main aspects of the overall debt level,debt maturity structure,debt source account.The control variable debt governance model introduce the factors of corporate strategy,because the investment in the development of enterprises and enterprise expansion strategy usually is consistent,so the introduction of a dummy variable of business expansion strategy.The fifth part is the empirical analysis.Mainly divided into two parts: the first part is a measure of the efficiency of investment in the Real Estate Company,whether it has the non efficiency investment behavior,to further verify the sensitivity of free cash flow and non efficiency of investment.The second part is the analysis of regression for the debt governance and investment efficiency,including descriptive statistical analysis of samples,person correlation analysis and regression analysis,and detailed analysis of the results.The sixth part is the conclusion and suggestions.Is divided into three parts,the first of the above analysis of the survey and research findings of the review and summary,and then put forward some pertinent policies and suggestions.The deficiency of the reflection in the study in order to be added in the future research.Through empirical analysis,this paper draws the following conclusions:(1)real estate enterprises in China are non efficiency investment behavior,excessive investment and insufficient investment coexist,free cash flow has high sensitivity and over investment,real estate listing Corporation has free cash flow over investment phenomenon caused by.(2)the overall debt ratio and over investment in a significant negative correlation not significant impact on investment.So the debt financing to a certain extent,can inhibit the excessive investment.(3)bank loans and excessive investment and insufficient investment related positive correlation,negative,that bank loans can not inhibit the over investment behavior of listed real estate companies,but can alleviate underinvestment.(4)commercial credit and excessive investment and insufficient investment showed a significant negative correlation,indicating that the commercial credit would inhibit the non efficiency of investment,and the commercial credit of excessive investment is stronger than the lack of investment management function.(5)payables and over investment has a negative correlation,positive correlation with the shortage of investment,excessive investment behavior payables can restrain enterprise,but will aggravate the lack of investment in the enterprise.(6)effects of pre payment of over investment and investment were not significant.(7)the short-term liabilities for excessive investment and insufficient investment plays a restrictive role in the inhibition of excessive investment and long-term debt as short-term liabilities.