Study On Thr Impact Of Corporate Strategic Differences On Debt Financing Costs

Expensive and difficult financing has been an important factor restricting the development of real economy.It is obvious that the development of an enterprise only depends on internal funds,and it needs more external financing.Debt financing is not only the most common way of external financing,but also one of the most important ways.The cost of debt financing is the key factor for enterprises to obtain more external financing,so reducing the cost of debt financing is very important for the sustainable development of enterprises.In order to effectively alleviate the problem of high financing cost of enterprises,the state has taken measures such as deleveraging and cost reduction to help enterprises reduce costs,and has also taken measures such as clearing up and reducing charges in all aspects of financing to reduce the comprehensive financing cost of enterprises.However,due to the constraints of resource shortage and imperfect financing mechanism,there are still multiple obstacles in the specific implementation,and problems such as expensive financing still exist in Chinese enterprises.There are not only external reasons such as national policy and economic environment,but also factors of financing demand for enterprises themselves.When the creditor gives the financing decision to the enterprise,it will not only evaluate based on the financial information of the enterprise,but also judge based on the non-financial information such as the strategic choice and operation strategy of the financing enterprise.The agency conflicts,such as information asymmetry,will lead to the increase of debt financing cost between creditors and enterprises,while the different strategic differences between radical and conservative choices aggravate the uncertainty of enterprise operation,and the choice of higher business risk strategy will lead to creditors' compensation of increasing debt financing cost.Therefore,the strategic difference is likely to be a deeper factor affecting the cost of debt financing.In addition,as an important supervisor of enterprises,institutional investors play an important role in corporate governance.The existing research shows that institutional investor shareholding can improve the quality of enterprise information disclosure by participating in corporate governance,and help to alleviate the information asymmetry between creditors and enterprises.So,will institutional investors' shareholding further inhibit the adverse effect of strategic differences on debt financing costs? Will heterogeneous institutional investors play different regulatory effects? Therefore,it is more meaningful to study the corporate strategic differences,institutional investors' shareholding and debt financing costs.In view of this,this paper takes A-share listed companies in 2011-2018 as the research sample,on the basis of testing the impact of strategic differences on debt financing costs,further studies the regulatory effect of institutional investors' shareholding.The results show that:(1)the difference of corporate strategy will lead to the increase of debt financing cost.(2)The overall holding of institutional investors is conducive to reducing the cost of corporate debt financing,but this inhibitory effect only exists in the pressure resistant institutional investors,and the holding of pressure sensitive institutional investors will lead to the rise of corporate debt financing costs.(3)The overall holding of institutional investors can inhibit the positive correlation between corporate strategic differences and debt financing costs,and the holding of pressure resistant institutional investors has a more significant inhibitory effect on the relationship between corporate strategic differences and debt financing costs.(4)When the enterprise is in a highly market-oriented region and a highly competitive industry,the overall ownership of institutional investors has a more significant inhibition on the relationship between the strategic difference and the cost of debt financing.Compared with the previous research,the contribution of this paper is mainly reflected in the following two aspects: first,this paper helps to understand that the characteristics of the strategic differences of enterprises are the deeper factors that affect the debt financing cost of enterprises,which has reference significance for the optimization of strategic decision-making of listed companies.Secondly,this study provides useful reference for improving the information disclosure system of capital market and making rational investment decisions for small and medium-sized investors.