Analysis On The Reason Of The Continuous Increase Of Unit Debt Cost Of JAC

Through observation,this paper finds that in the past three years,JAC has changed from a company with no debt financing burden to a company with heavy debt financing cost burden.Therefore,this paper intends to explore the reasons for the rising debt cost of JAC as well as the common reasons behind the change in the company's unit debt cost.After analyzing the tradeoff between debt maturity structure and debt source structure,this paper further studies the optimal debt maturity structure and the optimal debt source structure.And through to the enterprise different debt financing way financing cost of research,summarizes the conclusion: enterprises is the cause of changes in the cost of debt and other conditions change caused the change of the tax revenue,bankruptcy cost,weighed in on the principle of maximum profit under the company's optimal debt maturity structure and optimal debt sources structure changes,the dynamic management to pursue the optimal debt maturity structure and the optimal debt sources structure change the outcome of the debt financing.Then,through the case analysis of the optimal debt maturity structure and the change of the optimal debt source structure of JAC,the paper provides a case reference for the change of the unit debt cost of the enterprise.Finally,the empirical test is carried out with the data of automobile industry.Through literature review and theoretical discussion,it is known that the debt financing methods that enterprises can choose can be divided into short-term debt and long-term debt,commercial credit debt and financial debt.Different debt financing methods have different effects on unit debt cost.The paper further analyzes that the influencing factors of financing cost on the choice of debt financing method are tax saving income and bankruptcy cost respectively.Using the financial data of JAC from 2015 to 2019,this paper observes that the unit debt cost of JAC is positively correlated with its debt maturity structure,while the unit debt cost is negatively correlated with its debt source structure.The debt maturity structure of JAC has been increasing and the debt source structure has been decreasing in the past three years.This paper argues that this is the result of the management's dynamic choice of debt financing with the goal of balancing the maximization of returns.Through case analysis,the paper argues that the changes in JAC's debt paying ability,operating ability and cash flow lead to the changes in JAC's tax saving income and bankruptcy cost.In the face of these changes,the management of JAC has dynamically adjusted its debt maturity structure and debt source structure,which finally makes the unit debt cost of JAC continue to rise.Finally,this paper takes a-share listed companies in the same industry of JAC from 2010 to 2019 as samples,empirically analyzes the impact of debt maturity structure and debt source structure on unit debt cost through panel model,and draws a general conclusion.Empirical evidence shows that in the automobile industry,the debt maturity structure is significantly positively correlated with unit debt cost,while the debt source structure is significantly negatively correlated with unit debt cost.