The Influence Mechanism of Over Investment on Corporate Credit Risk

Chao-hui XU, Zong-fang ZHOU

Abstract


This paper studies the influence mechanism of over investment on corporate credit risk, using the Chinese listed companies over the period from 2009 to 2014. The study found that over investment is positively related to the new added with-interest property debt rate, at the same time, over investment and the corporate credit risk is significantly positively correlated, the new added with-interest property debt rate have mediating effect between over investment and corporate credit risk.

Keywords


Over Investment, With-interest Property Debt Rate, Corporate Credit Risk


DOI
10.12783/dtem/eced2017/9862

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