Title :
The Impact of Debt Financing on Investment
Author_Institution :
Accounting Dept., Shandong Univ. of Finance, Jinan, China
Abstract :
Using a panel data set of Chinese manufacturing listed companies, this paper investigates the impact of debt financing on investment of companies. It is found that debt has a significantly negative effect on investment in the whole samples. In order to distinguish the influence mechanism of debt financing on investment, the paper divides the whole sample into two sub-groups according to growth opportunity and CFO. In the high growth opportunity low CFO group debt has a significantly negative effect on investment but in the low growth opportunity high CFO group it does not have. That is to say debt does not inhibit the inefficiency of investment in China.
Keywords :
industrial economics; investment; CFO group debt; Chinese manufacturing listed companies; debt financing; growth opportunity; investment; Asset management; Conference management; Contingency management; Costs; Financial management; Information management; Information technology; Investments; Technology management; Testing; corporate governance; debt financing; manufacturing listed company; over-investment; under-investment;
Conference_Titel :
Future Information Technology and Management Engineering, 2009. FITME '09. Second International Conference on
Conference_Location :
Sanya
Print_ISBN :
978-1-4244-5339-9
DOI :
10.1109/FITME.2009.122
