Debt Maturity And Investment Efficiency Evidence From Korea

Q4 Business, Management and Accounting

Journal of Applied Business Research Pub Date : 2017-10-31 DOI:10.19030/JABR.V33I6.10047

H. Jeon, Hyunmin Oh

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引用次数: 0

Abstract

This study empirically analyzes the effect of debt maturity on investment efficiency, which is measured by using McNichols and Stubben (2008). Debt maturity is measured using current debt ratio and dummy variable. Specifically, we will investigate how short-term debt affects investment efficiency. Additionally, we will investigate the relation between the short-term debt affects investment efficiency according to debt maturity group. The results of this study are as follows. First, the short-term debt and investment efficiency were significantly positive (+) in both the total sample and the over-investment sample. Second, as a result of analyzing the maturity of debt by group according to the current debt ratio, the relationship between earnings quality and investment efficiency was significantly positive (+) in the short-term debt group. it is suggested that debt maturity and investment efficiency can be different for the total sample, over-investment sample, under-investment sample, and the relationship between earnings quality and investment efficiency can be differentiated by debt maturity group. This study has following additional contributions in comparison with domestic prior studies related to investment efficiency. First, prior studies related to investment efficiency are mainly concerned with the quality of financial reporting. This study implies that the relationship between investment efficiency and quality of financial reporting, and the relationship between debt maturity and investment efficiency among the characteristics of debt. Second, from the results of the analysis of the debt maturity and investment efficiency, it is confirmed that the debt is operating as a mechanism to monitor the investment efficiency of the corporation. Third, the analysis of debt maturity group suggests that the relationship between earnings quality and investment efficiency may be differentiated by short and long debt levels during debt financing. The limitations of this study are as follows. First, we might have not considered omitted other variables. Second, we might not have fully considered other proxies for the characteristics of the debt maturity and investment efficiency. Third, there may be a measurement error in the quality of earnings and investment efficiency. Finally, the relationship between debt maturity and investment efficiency can vary depending on the circumstances of the company. For example, specific debt contract provisions or national regulatory environment. Therefore, attention should be paid to the generalization of the results of this study.

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债务期限与投资效率——来自韩国的证据

本研究运用McNichols和Stubben(2008)对债务期限对投资效率的影响进行实证分析。债务期限用流动负债率和虚拟变量来衡量。具体来说，我们将研究短期债务如何影响投资效率。此外，我们将根据债务期限组来研究短期债务对投资效率的影响关系。本研究的结果如下:首先，在总样本和过度投资样本中，短期债务与投资效率均显著正(+)。其次，根据流动负债率对债务期限进行分组分析，短期债务组的盈余质量与投资效率之间存在显著正(+)关系。研究表明，总样本、过度投资样本和投资不足样本的债务期限与投资效率存在差异，盈余质量与投资效率的关系可以通过债务期限组来区分。本研究与国内先前有关投资效率的研究相比，有以下额外的贡献。首先，以往有关投资效率的研究主要关注财务报告的质量。本研究揭示了债务特征中投资效率与财务报告质量的关系，以及债务期限与投资效率的关系。其次，从债务期限和投资效率的分析结果来看，债务作为一种监督公司投资效率的机制在运行。第三，对债务期限组的分析表明，在债务融资过程中，盈余质量与投资效率之间的关系可能会受到短期和长期债务水平的区分。本研究的局限性如下。首先，我们可能没有考虑忽略其他变量。其次，我们可能没有充分考虑债务期限和投资效率特征的其他代理。第三，收益质量和投资效率可能存在计量误差。最后，债务期限与投资效率之间的关系可以根据公司的具体情况而有所不同。例如，具体的债务合同条款或国家监管环境。因此，应注意本研究结果的推广。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Applied Business Research Business, Management and Accounting-Business and International Management

CiteScore

0.60

自引率

0.00%

发文量

期刊介绍： The Journal of Applied Business Research (JABR) welcomes articles in all areas of applied business and economics research. Both theoretical and applied manuscripts will be considered for publication; however, theoretical manuscripts must provide a clear link to important and interesting business and economics applications. Using a wide range of research methods including statistical analysis, analytical work, case studies, field research, and historical analysis, articles examine significant applied business and economics research questions from a broad range of perspectives. The intention of JABR is to publish papers that significantly contribute to these fields.