Research On The Relationship Between Operating Cash Flow Characteristics And The Cost Of Corporate Debt Financing

Under the background of deepening reform and economic transformation in our country, the high cost of enterprise financing has become a serious problem which restricts the rapid development of our country’s economy and has aroused the great concern of the country.Over the past year, China has taken measures to reduce the cost of corporate debt financing in order to reduce the economic burden of enterprises.Reducing the cost of corporate debt financing needs not only the state’s macroeconomic policy support, but also requires enterprises to strengthen their own management capabilities and cash management capabilities.However, in the case of how to keep the cash flow in order to make the enterprise debt financing cost low, there are few empirical studies in the academic circles at present,so it is very meaningful to study the relationship between operating cash flow characteristics and corporate debt financing cost.By using the method of combination of theory and empirical analysis, this paper studies the 2009-2014 Shanghai A share manufacturing listing corporation.In accordance with the principle of relevance and importance, this paper studies the relationship from the three characteristics of cash flow from operating activities,these three characteristics are:net operating cash flow, operating cash flow scale and operating cash flow degrees of freedom.Finally, the conclusions are as follows:First, the net cash flow from operating activities of enterprises and the cost of debt financing is negatively correlated. Second, the scale of the operating cash flow of enterprises is negatively related to the cost of debt financing. Third, the operating cash flow degrees of freedom and the cost of debt financing is U type relationship.Further analysis shows that,when the business net cash flow is less than zero, the enterprise’s operating cash flow degrees of freedom and the cost of debt financing is negatively correlated; when the business net cash flow is greater than zero, the enterprise’s operating cash flow degrees of freedom and the cost of debt financing is positively related.Finally,according to the conclusions above, the article puts forward reasonable suggestions on how to manage the cash flow characteristics of the Listing Corporation in order to guard against financial risks and reduce the cost of financing:First, strengthen the management of accounts receivable and increase the amount of cash inflow from operating activities.Second,make reasonable use of commercial credit and delay the amount ofcash outflow from operating activities.Third,make scientific decisions and ensure that the cash flow structure of enterprises can be reasonably well and the free cash flow of the loss enterprises can be relatively high.Fourth,encourage the distribution of cash dividends and reduce the agency costs of enterprises and prevent excessive investment and discretionary spending behaviors.This study enriches the research content of cash flow from operating activities,combines the characteristics of cash flow from operating activities, and provides a way of thinking for the future research on the relevance of cash flow, so that enterprises can manage cash flow more fully.