Study On Corporate Debt Structure And The Choice Of Bond And Loan In China

At present, In Chinese enterprise's debt financing pattern, bank loan is dominant, while enterprise bond market is just a small portion. Meanwhile, our enterprise's debt maturity structure is over short-termed. Is there a relationship between our short-term debt maturity and under-developed enterprise bond market? In recent years, some of our country's scholars have related to enterprise bond market when they studied Chinese listed company's debt maturity structure, but most of them talked about them only from external system and didn't study the relationship between debt maturity and debt instrument's choice deeply, they also didn't study how it influenced financial market's pattern.Usually enterprise seeks for optimal debt financing structure with the lowest financing cost. Short-term debt covenant can increase the lender's mobility and reduce the agency problem of the borrower and the lender, which coincides with realistic bank loan; Long-term debt covenant can reduce the lender's mobility risk and transaction negotiation costs, which is similar with enterprise bond. So, through weighting the contradictory factors of short-term and long-term agency cost, enterprise can acquire optimal debt maturity structure. Optimal maturity structure decides debt enterprise's financing instrument's selection, which also decides credit market and enterprise bond market optimal boundary.After reviewing relevant theories and research achievements, this paper Starts from the analysis of enterprise's debt maturity, mainly applies empirical study to conduct a comprehensive study on firm's debt maturity structure and debt instrument' choice, both macroscopically and microcosmically. First, from institutional aspect, this paper expounds enterprise bond market's development in bank-based financing, analyzes bank loan contract's and enterprise bond's characteristics, studies the law on which it exists and exterior governance mechanism like financial regulation and government intervention; Then in chronological sequence, it conducts empirical studies on our country's macro and integral debt structure's development, furthermore, it conducts analysis based on panel data of provinces and analyzes our country's debt financing structure's influencing factor in different districts; From macro aspect, this paper applies incremental method GMM computation to analyze enterprise's debt maturity and debt instrument's choice. Then put financial regulation and exterior management environment index into PROBIT matrix to study our country's debt financing instrument's choice. The study shows the choice of bond and loan is not only decided by debt tool's intrinsic attributive character and debt issuer's financial status but also influenced by strong or weak financial regulation and exterior management environment in different districts. Finally, we put forward corresponding advices on our country's debt financing instrument's choice and enterprise's bond market development.