Theoretical And Empirical Study On The Influence Of Bond Credit Enhancement On Corporate Investment And Financing Behavior

The bond credit enhancement is an important means in the issuing of the bond market.Meanwhile,the research on the bond enhancement has become increasingly rich.But most of the existing research focuses on the impact of the bond credit enhancement in raising credit rating and reducing financing cost,which ignores the impact it may have on other aspects of the issuer.In addition,there is also a lack of research on the pattern of credit enhancement choice.Based on this,this paper takes bond credit enhancement as the research object,analyzes its impact on the investment and financing behavior of the company and compare its impact of different types of credit enhancement.In the aspect of corporate financing behavior,this paper studies the impact of bond credit enhancement on corporate bond issuance cost and financing constraints;In the investment behavior level of the company,this paper studies the impact of the bond credit enhancement on the investment efficiency and R&D investment.In terms of the way of credit enhancement,this paper takes onto account the different ways of third-party guarantee,mortgage and pledge guarantee and comprehensively studies the influence of various ways on various investment and financing decision-making behaviors.In the study of the impact of bond issuance on corporate bond issuance,using China's bond market data from 2008 to 2015,we find that bonds with credit enhancement have lower bond issuance spreads.Then we find external credit enhancement performs better than internal credit enhancement.Moreover,the most effective way of credit enhancement is using both external credit enhancement and internal credit enhancement.Further exploration suggests that the bond issuers' heterogeneity will affect the relationship between credit enhancement and issuance spreads: for issuers with greater information asymmetric,higher risk and state-owned enterprises,internal credit enhancement is more useful,while for those lower information asymmetric,lower risk and non-state enterprises,external credit enhancement works better.In the aspect of influencing corporate financing constraints,this paper finds that only the enterprises using the third-party guarantee can significantly reduce the degree of financing constraints,and the increase of mortgage guarantee and pledge guarantee is not significant to the extent of the mitigation of corporate financing constraints.Further research shows that credit enhancement significantly alleviates the financing constraints of the higher enterprises,and the role of the non-financing constraint samples is not significant.In the aspect of influencing innovation investment,this paper finds that the R&D investment of enterprises adopting the increasing means can increase by 21.4 %,an d the R&D investment of enterprises with mortgage guarantee is the biggest.The study of the further financing constraints as a group variable shows that: compared with non-financing constraint enterprises,the promotion effect of bond credit enhancement on R&D investment is more significant in the financing constraint enterprises.In the aspect of affecting the efficiency of corporate investment,through empirical study of listed bonds,it is found that,overall,the level of under investment with bond enhancement means is lower,and the excessive investment is less.In those firms that the third-party guarantee method is adopted,the effect of credit enhancement on enterprise investment efficiency is most obvious,because strong third-party guarantee can better supervise the enterprise investment behavior.The conclusion shows that the bond increase is helpful to ease the financing constraints and improve the investment efficiency of enterprises.Finally,combined with the empirical analysis,this paper puts forward the relevant behavior recommendations from the three aspects of choosing reasonable ways to increase the trust,enriching external sources and strengthening the supervision of the institutions,so as to promote the effectiveness of the bond enhancement measures and promote the development of the bond market.