Study On The Impact Of Internal Control Quality On Debt Financing

In recent years,in order to improve the quality of internal control of enterprises,the CSRC and other institutions have promulgated relevant policies and regulations.On the one hand,the improvement of the quality of internal control of enterprises will further improve the management capabilities and reduce the risks of enterprises.It can make enterprises have a better financial performance,so that investors can reduce the debt financing constraints on enterprises.In the end,enterprises can get a larger and longerterm debt financing at a lower cost.On the other hand,the improvement of the quality of internal control of enterprises will further alleviate or eliminate the information asymmetry between creditors and debtors,and this will also enable enterprises to obtain more financing constraints.Therefore,improving the internal control quality of the company will significantly reduce the debt financing constraints faced by enterprises and improve their debt financing ability.The impact of internal control quality on corporate debt financing is a key issue of research scholars at home and abroad.Firstly,this article summarizes the relevant literatures at home and abroad on the impact of internal control quality on debt financing and also reviews the literature in the domestic on the impact of property rights on the them.Then it defines the related concepts and put forward the principal-agent theory,information asymmetry theory and signal transmission theory on the base of theory analysis.Finally,it samples uses the data from 2011-2017 of Shanghai-Shenzhen A-share listed companies to descriptive statistics,correlation analysis,multiple regression analysis and robustness test at a way of the combination of theoretical analysis and empirical analysis.It researches the impact of internal control quality on the size,cost and duration of corporate debt financing.After considering China's basic national conditions and introducing the nature of property rights as explanatory variables.This article confirms that there are significant differences in internal control quality of corporate debt financing under different property rights.The nature of property rights should be considered as an important factor in corporate debt financing research.It provides a new perspective to related research.The empirical research results show that the improvement of internal control quality can effectively increase the scale and reduce the cost and increase the maturity of corporate debt financing,thereby improving corporate debt financing ability and reducing financing constraints.And compared with state-owned enterprises,the quality of internal control has a more significant impact on the size of debt financing and debt financing costs and maturities of non-state-owned enterprises.