Research On The Influence Of Managerial Ability On Corporate Debt Financing Cost

Compared with direct financing methods such as equity financing,indirect financing through debt is undoubtedly a more important financing channel for most enterprises in China.The existence of financing difficulties,expensive financing and other phenomenon not only reduce the efficiency of resource allocation in the capital market,but also bring great challenges to the survival and development of listed companies.It may also hinder the development of the real economy and increase the economic burden of the society.In this context,is there any way to reduce the debt financing cost of enterprises? This is not only a problem that the practical world needs to think deeply,but also the focus of academic research.Since the company's internal managers decide on the company's business policies and development plans,more and more scholars have begun to pay attention to research related to managerial ability.In many studies,most of the literature focuses on the economic consequences of managerial ability.At present,there is little literature on the mechanism and path of managerial ability.Based on this,this paper takes the relevant data of China's A-share listed companies from 2007 to 2016 as the research object,and studies the influence of managerial ability on corporate debt financing cost,aiming to reveal the inherent relationship between managerial ability and corporate debt financing cost.The study finds that managerial ability is negatively correlated with corporate debt financing cost.At the same time,with the frequent exposure of domestic and international financial scandals and the constantly changing economic situation,this paper compares the magnitude of the effect in different auditor types and financial ecological environment,highlighting the important role of managerial ability in reducing the cost of debt financing under relatively harsh conditions.Compared with the companies audited by the Big Four accounting firms,the reduction effect of managerial ability on debt financing cost is more significant in enterprises audited by non-big four accounting firms.Compared with enterprises with better financial ecological environment,the reduction effect of managerial ability on debt financing cost is more significant in enterprises with poor financial ecological environment.In further analysis,this paper verifies that the managerial ability mainly affects the debt financing cost of the enterprise through the information mechanism and the risk mechanism.The conclusions of this paper provide new ideas for reducing the debt financing cost of listed companies.The specific contents of this paper include many parts.The first part is the introduction part,which mainly explains the research background and research significance of this paper,introduces the research methods and basic framework of this paper,and explains the research methods and innovations of this paper;The second part is domestic and external literature review,which mainly reviews the relevant literature on managerial ability and corporate debt financing cost,and makes a literature review.The third part is theoretical analysis and research hypothesis,which mainly reviews basic theories such as information asymmetry,signal transmission,high-level echelon and human capital.Based on the theoretical analysis,the research hypothesis is proposed.The fourth part is the empirical research design,which mainly includes sample selection and data source,variable definition and description,and constructs relevant research models to verify the research hypothesis.The fifth part is the analysis of empirical results.It mainly shows the descriptive statistics,correlation analysis and multiple regression analysis of the variables.According to the results,further analysis and robustness test are carried out.The sixth part is the conclusion.It mainly summarizes the research results of this paper and puts forward relevant recommendations from three aspects.Finally,it points out the limitations of the research methods and ideas and the prospects for future research.The innovation of this paper is to analyze its impact on corporate debt financing cost from the perspective of managerial ability,and further analyze the information mechanism and risk mechanism that affect the relationship between the two.