The Impact Of The Term Structure Of Debt On The Company’s Inefficient Investments

Inefficient investment has always been an important factor affecting the stable operation and sustainable development of the company,at the macro level,companies with less inefficient investment behavior are usually manifested as reasonable resource allocation,high-speed growth economy,rich economic benefits,huge development potential,sufficient development opportunities,etc.Therefore,improving investment efficiency and reducing the generation of inefficient investment behaviors are of great value and significance to the operation and growth of the company’s development period and stable period.The term structure of liabilities(i.e.long-term liabilities/total liabilities)can affect the company’s capital structure,investment decisions,future development plans,and then affect the company’s investment behavior.Further research on the term structure of liabilities has a great role in standardizing the investment and financing behavior of enterprises,reducing the company’s inefficient investment behavior,and enhancing the company’s market value.However,most of the previous studies have been grouped from the nature of property rights,environmental uncertainty,industry,year,etc.,in fact,there are many differences in the investment planning and investment strategies of different growth enterprises,and the impact of growth on inefficient investment behavior is a factor that cannot be ignored.Based on the review of relevant research literature at home and abroad,this thesis makes improvements in research design: taking the median growth of companies as the boundary,the companies in the target data are divided into two groups,high-growth group and low-growth group,and regression is carried out to investigate the impact of corporate growth on corporate inefficient investment,which is one of the empirical innovation perspectives of this thesis.This thesis takes the data disclosed by Class A listed companies listed on the Shanghai and Shenzhen Stock Exchange before December 31,2021 from2011 to 2021 as a research sample,conducts empirical analysis and relevant statistical analysis,and discusses the impact of debt term structure on inefficient investment(specifically divided into underinvestment and overinvestment)in different periods,and the mediating role played by the nature of property rights and company growth in the correlation between the two.Empirical studies show that shortening the maturity structure of debt generally curbs inefficient investment behavior(over-and under-investment),thereby improving investment efficiency.In China’s capital market,the length of debt term has different effects on the company’s investment efficiency,and generally speaking,enterprises with a high proportion of short-term debt have less inefficient investment behavior.Specifically,it can be divided into the following aspects: shortening the term of debt has a restraining effect on excessive investment and underinvestment,and compared with non-state-owned companies,the term structure of internal debt of state-owned companies has a strong correlation with their excessive investment,and the term structure of debt and insufficient investment have a stronger correlation;The difference in corporate growth will affect the return of debt term structure structure and underinvestment and overinvestment,and the correlation between corporate growth and debt term structure and underinvestment will play a negative regulating role.