The Influence Of FDI Participation On Debt Financing Of Chinese Enterprises

The real economy is the lifeblood of the national economic development,and carrying out effective investment activities is the foundation of the continuous operation of the real enterprises,then enterprises often meet the demand for investment funds through financing.In recent years,with the accelerating process of marketization of China's economic development and the disadvantages of imperfect financial system also gradually revealed,in the interests of the chase,the emerging financial institutions will your money in a large number of virtual economy,at the same time,the traditional financial enterprise still holds on the conservative investment philosophy,which causes part of the entity enterprise cannot obtain sufficient funds to carry out investment activities effectively.Manufacturing industry is the key industry in China's current development.Under the background of the restructuring of global manufacturing pattern,China's manufacturing industry must seize this historical opportunity to seize the opportunity of future development of the manufacturing industry.Therefore,the source of financing for manufacturing enterprises is the basis for the transformation and upgrading of manufacturing enterprises,while debt financing is still the main financing method for manufacturing enterprises.However,the current reality is that manufacturing enterprises generally face financing difficulties.The existing research results show that foreign capital participation can partially reverse this phenomenon,guide external funds to real enterprises,and ease the capital pressure of manufacturing enterprises.On the one hand,foreign capital can reduce the phenomenon of information asymmetry in the market;on the other hand,quality foreign capital can promote the development of enterprises.However,when foreign capital enters the company with equity capital,it will weaken the original shareholder's control over the company.Therefore,if Chinese enterprises want to alleviate the financing constraint and grasp the control over the company,whether the degree of foreign participation will affect the debt financing of enterprises is a question worth paying attention.At the same time,enterprises have a variety of financing channels.Due to the different cost of debt capital,enterprises need to consider the cost of financing.The different participation of foreign capital has a direct impact on the cost of capital use of enterprises.Therefore,under the realistic background,the research on the degree of foreign capital participation on corporate debt financing has far-reaching significance.First of all,chapters I of this paper introduce the background and significance of the research,briefly expound the content and methods of the research,and point out the innovation and limitation of the research.Chapter II defines the relevant concepts,combs and comments the relevant literature on the impact of foreign investment participation and debt financing on corporate financing constraints and collates the relevant theories of FDI and debt financing,and lays a theoretical foundation for the following empirical analysis.Secondly,chapter III under the background that foreign participation can alleviate the financing constraints of enterprises,discusses the ways of foreign capital participating in alleviating the financing constraints of enterprises from a theoretical perspective,,and further analyzes the influence of foreign capital,participation on corporate debt financing and different financing sources by combining the degree of foreign capital participation and different channels to influence enterprises' different funding sources and puts forward the expected hypothesisThirdly,chapter ? screened the listed companies in Shanghai and Shenzhen two stock markets to choose qualified manufacturing companies' empirical data from 2010 to 2017 as research sample,control of the impact of operating income?internal cash flow?total asset return rate and other factors variables,establish regression analysis model,then conduct correlation analysis to verify the validity of model establishment and variable selection.According to different financing modes,the system GMM method is used for regression analysis of financing scale,OLS method was used for regression analysis of bond financing,and hypothesis contents were tested.After further analysis and summary of empirical results,the following specific conclusions are obtained:(1)foreign capital participation can promote corporate debt financing;the higher the degree of foreign capital participation,the larger the debt financing scale;(2)the research on two different sources of liabilities,bank borrowing and commercial credit,shows that the participation of foreign capital has a significant promoting effect on two different sources of liabilities of enterprises.(3)foreign participation helps corporate bond financing.The higher the degree of foreign participation,the lower the bond credit spreads.Finally,chapter ?,based on the conclusions of this paper,gives some corresponding policy suggestions from the angle of enterprise and government.The innovation of this paper:firstly,in terms of research content,most of the previous literatures are aimed at the influence of foreign participation on the financing constraints of enterprises and the influence of the channels,this paper considers the influence of foreign investment on enterprises' funds through different channels,and studies the influence on different source liabilities.Secondly,In the research perspective,the research on the influence of FDI on the financing restraint of a certain industry is very rich in the view of industry association,however,at the micro level,the research on individual behavior of enterprises is rather scarce,this paper from this point of view,enrich foreign participation in the study of corporate financing activities.Of course,there are some limitations,this paper chooses the sample data of the manufacturing listed enterprises as an example to do the relevant research,and the qualified enterprises are all large enterprises,which makes the research conclusions have certain limitations.