Analysis For The Behavior Chosen By The Listed Companies In Bond Financing

With the research and development of behavioral finance theory, some of the basic assumptions in traditional finance, such as the investors are rational, effective market increasingly questioned by the scholars, scholars at home and abroad start to study the environment of capital market on corporate financing choice from the irrational investors, market is not complete and effective perspective, then found that enterprise financing activities do exist the market timing effect. The theory research at home and abroad is mainly focused on the stock market and the bond market is studied less. Because of the preference of equity financing, bond financing of enterprise as the important part in the study, have been neglected for a long time. Therefore this article will attempt to study both market timing theory and bond financing theory, to explore the rule of development of the bond market, to promote the development of China’s bond market.This paper firstly introduces the development and main research content for market timing theory. It summed up domestic and foreign research theory and method combining the market timing and bond financing, in order to provide the theoretical basis. Then it examined the bond financing of China’s Listed Companies in the presence of market timing behavior with multiple regression method. And then it analyzed the main factors of market timing behavior theoretically, and provides variable selection based on for further empirical research. On this basis, it tested the main variables to produce market timing behavior so as to give managers hold bonds financing timing recommendations.The empirical results shows that market timing behavior do exist when the management of Listed Companies in China is on the bond financing. The effect of market conditions on enterprise bond financing behavior depends on the proceeds of the bond market and supervision system of double factors. On the one hand, Listed companies in debt financing timing is based on the bond market of choice, i. e. when the current bond index is higher, rational company managers will bond market prospect with positive attitude, more inclined to take the bond financing and larger scale. On the other hand, based on securities regulatory policy choose machine, there will be more and more listed companies choose to bond financing when the state of the bond financing encouraged. At the same time, the bond financing timing managers consider three main factors, namely the London Interbank Offered Rate, the Shanghai Composite Index and national bond issuance regulatory policy.