Financial Leverage, Growth and Investment Efficiency

This paper studied the relationship among financial leverage, growth and the investment efficiency, using the data of listed companies during 2013-2016. The study found that insufficient investment phenomenon is more common. Instead of linearity, the relationship between financial leverage and investment efficiency is inverted U shape; Taking the different growth of company into consideration, it found that in the high growth firms, the role of debt is mainly reflected in the promotion to insufficient investment, for low growth firms the effect is mainly manifested in the inhibition to overinvestment. These findings will provide some guidance for the company's financing and investment.