A Comparative Study On The Corporate Bond Market Of China And U.S

After more than 20 years of financial system reform, financing structure and corporate financing have made considerable progress in China. But with the deepening of the reform, the problem of financing structure, especially financing problem of corporate bond market has been prominent. At present, the financing risk has been converged on Commercial bank and a large system risk has hidden in the whole financial market. China should develop many financing channels to improve direct financing ratio. At this time, the development of corporate bond market has become an urgent task.This thesis focuses on Institutions & Institutions changes, Financial Market Microstructure Theory, Capital Structure and Contract Theories, which are closely related to development of corporate bond market. By a comparative study on the corporate bond market of China and U.S, meanwhile, together with a study on the economic history and specific condition in China, the author's aim is to conclude plentiful theories and find empirical basis, consequently offer some suggestions about the development of corporate bond market of China. This thesis is organized by six chapters as follows:Chapter 1 is the introduction, this chapter is the briefs explanation of the whole thesis, mainly expounds the significance and background of the research, recalls & handles the related papers and research situation at home and abroad, briefs the angle of the research, approaches and structure of the study, and lastly sum up the main creation points of this thesis.Chapter 2 is the theoretical fundaments of the full thesis. Surveying systematically the newly development of the theory of New Institutional Economics related to the corporate bond market, this chapter focuses on the positions, functions & their internal relationship of Institutions & Institutions Changes, Financial Market Microstructure Theory, Capital Structure and Contract Theories & Systems. This chapter sets up the whole analyzing frame & theoretical platform according to the New Institutional Economics theories & the angles of the research on the corporate bond market.Chapter 3 to Chapter 5 are the main parts of the thesis, focusing on providing theoretical and empirical study basis. Chapter 3 provides a comparative analysis on thedifferent institutions changes between market-oriented financing structure in U.S and bank-oriented financing structure nowadays in China from macro-angle, combinig with the theory of New Institutional Economics. Meanwhile, it alalyzes profoundly the effects on the external efficiency of the corporate bond markets with different financing structure of U.S and China and concentrates on the inefficiency of institutions arrangement of corporate bond market of China. In chapter 4, the author gives a comparative analysis on the differences of financial market microstructure characteristics of corporate bond markets of China and U.S. The corporate bond market of U.S has been complete marketization, therefore, with a high internal efficiency. But for China, its market microstructure is less developed, it hasn't established a perfect transaction system and a complete mechanisms of price-decision. In addition, under the Government policy guidance in the process of economic transition, the marketization of operating process is more likely to be interrupted, so it produces the internal inefficiency. Chapter 5 deals with the capital structure of a single firm in China and U.S, seeking internal motivation of financing behavior of a firm from micro angle. Discussing the characteristics of corporate financing models during the economic transition in China, this chapter points out it is important to optimize corporate capital structure and run institutions innovation.Chapter 6 mainly provides institutions arrangements and policy recommendation about how to develop the corporate bond market of China, from financing structure of macro-angle, financial market microstructure of corporate bond market and micro institution of a single firm specifically.