Empirically Research On The Influential Factors Of Debt Financing Cost For Chinese Listed Companies

As one of essential financial activities in modern company production and business operation, the effect of financing for enterprise development and internal resources optimal allocation has become more obvious. From the micro level,enterprises’ financing behavior affects its governance structure and productivity.From the macro level, enterprises’ financing behavior plays an important role to the optimal allocation of social capital. Along with the continuous reform of financial institutions, the increasingly perfect of financial supervision system and the rapid rise of the capital market, corporate financing tools also presents the diversified development. At present, the external financing of listed companies in China is mainly made up of debt financing and equity financing. The equity financing process is more complex and higher financing costs because of the strict restrictions to raise equity and issuing new shares from our country financial regulation department. And debt financing become one of the important financing tools because of its simple operation, easy to be flexible, and lower the cost of financing. Except the maneuverability of the financing tools, the cost of financing is also affect the ability of the debt financing of listed companies. The cost of financing will directly affect of listed companies financing strategy and decision, and further affect their operation performance level. Therefore, this paper selects the listed companies in China as research object, analyses the development statue of financing and present features of financing costs of the listed companies. Then it concludes the micro and macro influential factors, and empirically tests these factors with econometric model.At last, this paper puts forward the policy suggestions to reduce the costs of debt financing of listed companies.This paper firstly analyses the development statue of financing from financing mode, corporate bond issuance, structure of assets and liabilities on the basis of reviewing the development history of debt financing system in China. Secondly, it analyses the present features of financing costs of the listed companies from the distribution characteristics, industry differences and regional differences. Thirdly, it concludes the micro and macro influential factors of the listed companies, and put forward the corresponding theoretical assumptions. Fourthly, this paper builds a panel data econometric model, and empirically tests these factors with correlation analysis and regression analysis method. At last, it puts forward the policy suggestions to reduce the costs of debt financing of listed companies frommicro-level and macro-level. The main research conclusions are as follows: first and foremost, the ratio of debt financing of listed companies in China is less than equity financing and internal financing, and the debt financing rely mainly on short-term liquidity liabilities. Moreover, the costs’ curve of debt financing of listed companies in China shows the right skewness distribution, and the average cost of debt financing is 0.07. The average cost of the east region is more than the central and west region, and the industries of highest cost are information transmission, software and information technology services, hotel and restaurants, the health and social work as well as comprehensive. In addition, there is a “U” relationship between the debt structure and the financing costs, and the rational debt structure is 10.38%.There are negative correlation between debt paying ability, corporate governance level, accounting information quality and the financing costs. At last, the financing cost is relatively low in the region with high level economic development and in the companies with political relevance. Besides, the tighten monetary policy will raise the average costs of debt financing.