Research On The Effect Of Life Cycle Of Enterprise And Analyst’s Coverage On Financing Cost Of Corporate Bond

With the emergence of a hybrid financial system,companies can find matching financing channels with lower costs according to their own needs.The traditional financing model affects the progress and cost of corporate financing activities,and the coexistence of multiple financing channels can adapt to various types of funds raised by modern enterprises.Need to ensure the long-term development of the enterprise.The effectiveness of the capital market and the efficiency of financing have been blocked by information asymmetry,and the agency costs incurred are also the focus of attention of all enterprises.In the necessary financing activities,it not only affects the financing decisions of the enterprise,but also affects the value judgment and investors Investment decision,so the existence of information asymmetry hinders the company’s financing activities to a certain extent.With the rapid development of China’s bond market today,the cost of corporate bond financing is lower,and the proportion of corporate bond financing is gradually increasing.This paper looks for the new influencing factors of corporate bond financing costs by studying the impact of corporate life cycle and analyst attention on corporate bond financing costs.By combing the existing literature,this paper finds that there is still a lack of research on the corporate life cycle and analysts’ concerns among the factors affecting the financing cost of corporate bonds.Enterprises have different levels of information asymmetry and agency problems in different life cycle stages.The level of agency costs determines the difficulty of corporate financing decisions.This will inevitably affect the corporate bonds issued by companies.Take appropriate financing strategies to reduce your own costs and increase profitability.As an intermediary in the capital market,analysts can alleviate the problem of information asymmetry between creditors and enterprises to a certain extent.Analysts pass on more real internal information about the company to the market in various ways,which helps creditors to correctly distinguish good companies from bad companies and improve the efficiency of market resource allocation.This paper measures the corporate life cycle of corporate bond financing costs and analyst attention,and uses standardized methods to deal with it.After the regression,it was found that under the condition that other factors remain unchanged,the cost of corporate bond financing for new or young companies is higher.The cost of corporate bond financing will decrease with the age of the company,that is,mature companies can reduce the cost of corporate bond financing.In order to further investigate the impact of analyst attention on the relationship between corporate life cycle and corporate bond financing costs,this paper subdivides the listed companies in the bond market into high-level and low-level concerns to build econometric models.After the regression,it was found that,under the condition that other factors remain unchanged,analyst attention can promote the further reduction of corporate bond financing costs of mature state-owned enterprises.In order to enhance the accuracy of the research conclusions,this paper conducts a robustness test from the perspective of model measurement methods and sample data segmentation.This paper replaces the original robustly adjusted OLS model with Tobit model and retests.The regression results are basically consistent with the previous conclusions;The robustness of the “age stage division” has re-tested the sample into two different age stages,namely young and mature enterprises,and the regression results are basically consistent with the foregoing conclusions.It is undeniable that the new things are still imperfect,and there are areas for improvement.With the rapid development of China’s financial system,more and more enterprises are fully enjoying the convenience of the continuous evolution of the capital market,which provides more space for the choice of corporate financing methods.Finally,this paper proposes suggestions on the impact of corporate life cycle and analyst attention on corporate bond financing costs for three types of entities: bond issuers,market investors,and economic policy makers.It also analyzes the shortcomings of research and looks forward to future research.