Research On The Relationship Of Product Market Competition, Debt Heterogeneity And Inefficient Investment

As an important part of stimulating the economic development,investment activities have been widely concerned by the society,but the capital market mechanism of our country is not perfect enough,and the problem of information asymmetry is still widespread.These factors have brought great influence to the rational investment decision of managers,and then lead to inefficient investment behavior,which is not only unfavorable to the long-term development potential of enterprises,but also reduces the overall investment efficiency of the whole society.According to the data of China Statistical Yearbook 2019,the annual growth rate of fixed assets investment in China’s whole society is about 12.50% from 2010 to 2018,but the annual growth rate of GDP is only 10.26%,which means that the fixed assets investment is investment behavior at the expense of capital.So it is urgent to study and solve the problem of inefficient investment.For enterprises,financing activities can provide necessary financial support for investment activities,especially debt financing activities,which is one of the main ways for listed enterprises to raise funds in China.So will debt financing affect inefficient investment? Are the effects of different types of debt on inefficient investment consistent? Will the relationship between them change under different market competition? These are the hot topics of academic research.On the study of the influence of debt financing on inefficient investment,scholars at home and abroad mainly focus on the overall scale and term structure of debt,but lack of in-depth exploration of debt heterogeneity,and few scholars explore the regulatory role of product market competition on the two.Considering the difference of operating debt and financial debt in cost and risk,this paper selects Shanghai and Shenzhen A-share listed companies from 2010 to 2018 as the research samples,and systematically examines the effect of debt heterogeneity on inefficient investment and the relationship between them under the regulation of product market competition from the perspective of source heterogeneity and term heterogeneity,and further expands the relationship between debt source heterogeneity and inefficient investment,which includes exploring the relationship changes of different property rights and the correlation between product market competition,heterogeneity of debt sources and inefficient investment.This paper concludes with the following conclusions:(1)operating debt is negatively correlated with inefficient investment,while financial debt is positively correlated with inefficient investment;(2)short-term financial debt is negatively correlated with inefficient investment,while long-term financial debt is positively correlated with inefficient investment;(3)the fiercer the competition in product market,the stronger the negative impact of operating debt and short-term financial debt on inefficient investment,and the stronger the positive impact of financial debt and longterm financial debt on inefficient investment;(4)compared with non-state-owned enterprises,state-owned enterprises’ operating debt has less inhibitory effect on inefficient investment,and financial debt have more promoting effect on inefficient investment;(5)the degree of debt source heterogeneity is negatively correlated with inefficient investment,and the fiercer the competition in product market,the stronger the negative impact of them.This paper proves the correlation between the debt heterogeneous and the degree of debt sources heterogeneity with inefficient investment,and product market competition also has a certain effect on the relationship.These conclusions have certain guiding significance for enterprises to make financing and investment decisions.