Shareholder Characteristic And Debt Cost:

At present,the development of global industry is facing the challenge of diminishing marginal returns on capital investment.In order to solve the current economic problems,China implements supply-side reforms to promote economic growth.Innovation,which comes from scientific research,is very important to the development of technology.Scientific research is an effective way to invent new technologies and inventions.Therefore,universities and research institutions should take responsibility for pushing the development of economy.In recent years,many universities and research institutions have begun to enter the capital market and use their resources and advantages to promote the development of capital market.In addition,the firms of China are facing serious financial difficulties.The government has begun to set up rescue funds to help firms to solve the financial problems.This paper studies the relationship between the academic background of shareholder and debt cost for two reasons.First,we want to help universities and research institutions to explore an effective way to promote the development of economy.Second,we are devoted to help the firms to solve the problem of financial constraint.This paper takes the data of the listed companies of China as samples.And studies the impact of the academic background of shareholders on debt cost.We refer to the existing research results,and propose research hypotheses.Then we selects the data of listed companies from 2009 to 2016 and establishes a regression model to verify the hypothesis of this paper.We also use the instrumental variable method and the propensity score matching method to control the endogenous problems that may exist in the model.The results of the study show that the academic background of shareholder can reduce the debt cost,and the result is still robust after a series of robustness tests.We also find that academic background of shareholder reduce debt cost by improving the level of accounting conservatism and trade credit.In addition,through further research,we find:(1)the debt cost of firms reduced after the academic shareholder hold the share;(2)compared with non holding academic shareholders,the impact of holding academic shareholders on debt cost is more significant;(3)compared with the research-institutions shareholder,the college shareholder can take a more significant impact on debt cost.The results of this paper provide an effective way for universities and research institutions to promote the development of capital market,and provide some effective suggestions for the listed companies which have the problem of financial constraint.So this paper is meaningful.