The Empirical Analysis On The Factors In Debt Financing Of Private Listed Companies

Since China’s reform and opening up, with the deepening of marketization in China, China’s private economy has developed rapidly and become a major force in China’s economic development. At the same time, private enterprises’brand national effects play an important role in national cohesion and improving the international economic status of our country. However, in recent years, either non-listed private enterprises or private listed enterprises are universally faced with a similar dilemma-a shortage of funds, financing difficulties in the further development process. The difficulty of financing becomes the main factor hindering the development of the private enterprises. In this context, studying and solving the financing problem of China’s private enterprises would have important practical significance. As listed private enterprises, it can use equity financing, but our country’s imperfect capital market and the not-well operating performance of private listed company itself makes equity financing is limited, debt financing for private listed companies still seem to be very important.This paper, put the influence factors on debt financing of private listed companies as the research object, through the review of previous literature about financing, it can be found that a large number of domestic literature have do much theoretical research on financing present situation, reasons and countermeasures around the small and medium-sized private enterprises. Western scholars make a lot of academic research on factors affecting the company’s financing structure, but as a results of the reality of the complexity of the economic structure and the system differences in different economic, the empirical analysis on the choice of the ways of financing is not completely consistent. It can be also found that the domestic study of capital structure is concentrated in the listed company or a certain industry and there is little empirical study of the influence factors of debt financing of private listed company. Private listed company is a special and important group, separating them to do research is necessary. Using the related financing theory as the premise, based on previous theoretical research, carrying on theory analysis firstly, and then from the system environment of the private listed companies, summarize private listed company debt financing factors as: liquid asset, firm size, political connections and corporate profitability, guarantee ability, growth, tax shield effect, non-tax shield effect, enterprise credit, income volatility, signal (dividend payment rate), etc, and put forward the corresponding assumptions, and then use the empirical method to analysis. The study finds that liquidity, not debt tax shield is negatively related to the debt financing, political connections, guarantee ability, tax shields, enterprise credit, dividend payment rate and debt financing are related. Profitability due to the difference of index selection appears different results, but negatively related in general. The company size, growth, income volatility is not significant.In this paper, on the whole, using the combination of normative analysis and empirical analysis research methods, the particular approach is based on a sample during 2008-2010, select samples of the private listed companies which issue A shares to do an empirical study on influence factors of debt financing, to verify the hypothesis, establishing the regression model, using SPASS17.0 descriptive statistics analysis, multiple linear regression analysis and robustness testing. Finally, to better solve the problem of difficult financing for private listed companies, some suggestions both on the targeted and relevant aspects are put forward.