Research On The Direct Financing Cost Of Non-listed SMEs In My Country

This thesis analysis the cost of direct financing of Chinese private SMEs.So far domestic research is primarily concentrated in the stock financing of listed companies,or the yield of credit debt and interest rate bond.There is not enough attention to the direct financing question of private companies because of the information and data constraints.Nowadays it is possible to do some systematic research on direct financing of private companies with the reformation of finance policy and innovation of capital market instruments.The article contains six chapters.The first chapter is about the background,target,idea,framework and creative of this research.The second chapter is literature review.In this part we define some core character,and review the literature of company finance,private debt,equity financing,cost of financing,etc.The third chapter are respectively qualitative analysis the domestic debt financing and equity financing of private companies,and comparative analysis between China and developed market.The fourth and fifth chapter are respectively quantitative analysis the cost of debt financing and the cost of equity financing of private companies.In the last chapter we conclude our research and give some policy suggestions.Conclusion of direct debt financing:there are obviously shortage of the market breadth and depth of domestic private debt market,and the design of private items.Policy suggestions of direct debt financing:1.Uand refinancing for expanding the market depth.3.Reduce related transaction fees for n-constrain the limit of organization investors for expanding the market breadth.2.Issue the regular on private debt pledge more deals and liquidity.4.Found several national financing guarantee organizations for more external credit channel.5.Design insurance and reinsurance instruments of private debt for reduce the debt default damage.6.Design special private debt with interest discount for high growth and small scale companies.Conclusion of equity financing:1.The distribution of equity investment of China is unbalanced.2.The NEEQ market is lack of enough liquidity.3.Information disclosure and company governance is not sufficient in NEEQ.Policy suggestions of equity financing:1.Un-constrain the limit of organization investors for expanding the market breadth.2.Accelerate the issue of policy on NEEQ companies converting to listed market and bidding transaction.3.Improving the information disclosure requirement and the corporate governance.