The Study On The Influence Of Family Control On The Cost Of Corporate Credit Debt Financing

For a long time,financing is difficult and expensive for family enterprises.Because of the special organization form of family enterprises,compared with equity financing,enterprises usually prefer debt financing.Issuing credit bonds is an important way of debt financing.Therefore,it is of great significance to study how to relieve the financial pressure of listed family enterprises and reduce the cost of debt financing.Based on this,this paper uses the data of China’s A-share listed companies that issued credit bonds from 2009 to 2019 to conduct regression analysis on the impact of family control on corporate debt financing.The study finds that the family control variable is significantly positive,indicating that family control does lead to a significant increase in the cost of corporate debt financing,and this positive effect is more significant for enterprises issuing AAA bonds and in the real estate industry.In addition,with the increase of family involvement,the financing cost of credit debt of family enterprises increases.Furthermore,this paper introduces the interaction of occupation risk variable,political connection variable,technological innovation variable and family control variable to study the transmission mechanism of family control on corporate debt financing.The results show that the interaction coefficient of occupation risk variable and family control variable is significantly positive,which indicates that the increase of occupation risk will strengthen the influence of family control on the cost of corporate debt financing.The interaction coefficient of political correlation variable,technological innovation variable and family control variable is significantly negative,which indicates that the establishment of political connection or the improvement of technological innovation ability of enterprises can weaken the influence of family control on the financing cost of corporate credit bonds.Finally,according to the above conclusions,this paper puts forward the relevant policy recommendations to optimize the debt financing environment of Chinese Listed Family firms.First,for regulatory agencies,we should improve the external supervision and management mechanism of enterprise credit debt,so that creditors can timely understand the real business situation of the enterprise and protect their own interests.Second,for the government,it should actively build a new type of government business relationship with enterprises,fully understand the demands of enterprises,conduct onthe-spot research on the financing difficulties encountered by family enterprises,open up more direct financing channels,and alleviate the financing problems of family enterprises.Third,for family enterprises,on the one hand,it should actively express demands to the government and seek reasonable support from the government.On the other hand,we should enhance the innovation ability,improve the sustainable competitiveness of the company,and then improve the profitability and solvency,so as to enhance the confidence of investors and reduce the risk of debt default.