The Case Study About Market Timing Selection Of A Company Debt Financing

Financing is the financial activities that every enterprise has to experience in the process of development,it plays a decisive role in the survival and development of enterprises.In recent years,new financing methods emerge in endlessly,enterprises can choose different financing methods according to their needs,and different proportion of financing ways will form different capital structure,different capital structure will bring different degrees of business risk to enterprises.Chinese enterprises have been financing decision activities under the guidance of traditional finance theory,but with the maturity of the capital market,business managers and industry scholars find that a series of " anomalies" in the market can't be explained by traditional finance theory.The study found that the traditional financial theory of the default managers and market investors are absolutely rational,the market is completely effective,but the premise hypothesis is not reasonable,contrary to the real life,too absolute.In recent years,scholars begin to realize that the financing behavior of enterprises should be studied from the premise of non-irrational,and the direction of research starts from " how to make decisions" to " how to make decisions ".At the same time,because of the late start of debt financing,as a rising star,related research literature and equity financing need to beadded,so this article selects A company as the research object,and tries to find out how to effectively grasp market opportunity.The results show that: 1.the debt financing behavior of A company does have the characteristics of market timing,the effect of market environment on corporate debt financing decision depends mainly on the double factors of interest rate and stock market,when the market interest rate is low,debt financing is selected.And debt financing can be considered when the stock market downturn.2.The regulatory policy of the state on corporate financing and related industrial policies also affect the choice of the timing of corporate debt financing.When the state encourages the bond market and its industry,enterprises are willing to choose bond financing,vice versa.3.the decision ability of enterprise managers and the choice of debt financing opportunity have certain relevance.Especially the risk tolerance of enterprise managers directly affects the financing decision,and then has a certain impact on the financing structure of the whole enterprise.