A Case Study On The Timing Of Debt Financing In Gezhouba Dam

With the deepening of China's economic system reform,capital market has the largest proportion of the two largest sub markets,and stock market and bond market has always been the main platform for Chinese enterprises to seek financing.At present,China's large enterprises to seek financing path of equity financing ratio is still high,but by the access mechanism of equity financing market strictly,higher financing costs,easy to disperse control of the enterprise,the enterprise information disclosure cost impact of other factors,the financing of small and medium-sized enterprises in China tend to prefer debt financing.Study on the back in recent years,Chinese and foreign enterprises financing case is not difficult to find that the scholars at home and abroad market timing of equity financing options to do a thorough study found such as the stock is overvalued,enterprises are willing to issue shares;stock undervalued repurchase stock market timing opportunity.However,there are few studies on market timing in the process of debt financing.As a starting point this paper will choose debt financing market timing,from domestic and foreign scholars to research the market timing of equity financing,and combined with the analysis of the existing scholars on the motivation of market debt financing in the process of the timing,supplement and carding of SME debt financing path.This paper is as follows: firstly,the theoretical analysis of the debt financing for SMEs;and then combined with the Gezhouba Dam group of nearly 3 years of debt financing situation,the case and the theory of fusion,analysis of non risk interest rate,inflation rate,the term structure of interest rate,risk aversion,liquidity constraints,enterprise value assessment and the national policy of debt financing market timing,establish debt financing market timing existence.Finally,we try to find the best market timing for debt financing of SMEs in China,help SMEs make more sensible debt financing choices,and break the curse of "financing difficulties and financing expensive" of SMEs.The results show that: 1.the debt financing behavior of Gezhouba Dam group has the characteristics of market timing,and the influence of market timing on enterprise debt financing decision is mainly reflected in the risk free interest rate and inflation rate and the term structure of interest rate.When the risk-free interest rate is low,the group chooses debt financing,and when the market interest rate is higher,it turns to other financing methods.When the inflation rate is high,the State implements the tight monetary policy,raises the loan interest rate level,and reduces the enterprise debt financing scale.2.from a macro perspective,the introduction of national policy and industrial policy,the evaluation of enterprise value and the existence of external liquidity constraints have a great impact on the debt financing of the enterprise.When the state has a positive trend toward the bond market and industrial policy,enterprises tend to choose bond financing more easily,and vice versa.At the same time,the public will measure the value evaluation of the enterprise according to the industrial development of the enterprise.When the prospect of the industry is more predictable and is in line with the growth path of the public,the expectation of the public will often raise the value evaluation level of the enterprise,and it is more favorable for the enterprise to carry out equity financing.When the liquidity constraints are tight,the state will appropriately increase the supply of money and reduce the level of interest rates.Enterprises are more likely to choose bond financing channels.3.from the perspective of enterprise managers.The existence of risk aversion will affect the managers' decision-making ability and have a certain relevance with the choice of the timing of debt financing.The risk tolerance of enterprise managers directly affects the financing decision and has a certain impact on the financing structure of the whole enterprise.