Research On The Relationship Of Classification Indicators Of Provincial Government Fiscal Transparency And Credit Rating Of City-invested Bonds

The issuance of local government debt has played an important role in promoting Chinese infrastructure construction.In 2017,China issued 2278 urban investment bonds,20101.065 billion yuan in total,and 2797 local government bonds,1.08522.7365 trillion yuan in total.The problem of local government debt has always been the focus of our government and domestic or foreign scholars.In 2017,the Ministry of Finance issued a series of local debt management regulations,such as the "Risk Classification Guidelines,""Administrative Measures for Special Claims on Land Reserves," and "Administrative Measures on Special Claims for Toll Highways." The Central Government has been trying hard to control the unreasonable increase in the scale of local government debt and prevent the occurrence of local financial risks.However,the division of bond repayments issued by local government financing platforms is not clear,and local government fiscal transparency is not high,which brings with it both internal management difficulty and external monitoring difficulty for local debt management.The improvement of fiscal transparency is conducive to controlling the size of local debt.The existing literature does not discuss the relationship between different fiscal transparency indicators and the credit rating of city-invested bonds,and it cannot enable the government to achieve the target through the strategy that improving the credit rating of city-invested bonds by improving fiscal transparency.The purpose of this paper is to find out whether there are differences in the impact and the extent of the impact of different indicators of fiscal transparency on the credit rating of city-invested bonds,so as to make relevant recommendations when the government manages government debt and investors invest in city-invested bonds.This article reviews the literature on the relationship between government debt and fiscal transparency,and combines fiscal transparency and the status quo of the development of credit ratings for city-invested bonds.We uses the city-invested bonds' data,company data,and macroeconomic data for each province as a control variable,the credit rating data of city-invested bonds issued from 2014 to 2016 were used as interpreted variables,and eight fiscal transparency indicators from 31 provinces were used as explanatory variables to establish a regression model,and change the time interval to test the robustness of the model.The results of the study found that:Firstly,only several fiscal transparency indicators are significant to the credit rating of city-invested bonds;Secondly,different indicators of fiscal transparency have different effects on the credit ratings of city-invested bonds;Thirdly,different fiscal transparency indicators have different effects on the credit rating of city-invested bonds between the eastern and western regions.Finally,this paper suggests that first,the local government can improve the credit rating of city-invested bonds by raising some of the fiscal transparency indicators;Second,when local governments increase the credit rating of city-invested bonds by increasing fiscal transparency,they must implement sub-regional indicators.Third,when investors use the fiscal transparency of the government as a reference to invest in city-invested bonds,they must consider sub-regional indicators.