| In 2005,the Chinese interbank bond market officially launched the short-term financing of non-financial enterprises,which opened the channel for the rapid development of standardized direct debt financing of non-financial enterprises in China.Through nearly 20 years of development,China's bond market scale has exceeded 9 trillion dollars,ranking the third in the world.Chinese bond market has reached the achievement which cost the western bond market for more than 200 years.At present,China's corporate bond financing scale has far surpassed the stock financing scale.There are many unique Chinese characteristics in Chinese bond market.In academic research,however,compared with the stock price of initial public offerings,domestic research on bond issuance price is rare,most of these studies are based on western bond pricing model,the applicability is insufficient.The research on the bond issuance price with Chinese characteristics of non-financial enterprises needs to be added.Compared with the exchange bond market,China's inter-bank bond market,on the one hand,has a longer history and larger issuance.In general,the issuance of non-financial corporate credit bonds accounts for about 75% of the whole market,which is the most representative market of China's corporate bond financing.On the other hand,compared with the exchange bond market,the members of the inter-bank bond market are more abundant,basically covering major domestic large institutions.The abundant market members make the research on this market more universal.At the same time,considering that the registration and issuance system of the inter-bank bond market is more flexible and Banks can participate in the underwriting,this paper chooses the inter-bank bond market as the research object and the total 19,752 issues of non-financial corporate bonds from the first issue of the inter-bank bond market in 2005 to the end of 2017 as the research sample.The empirical analysis of this paper mainly includes four parts: first,this paper sets up 20 explanatory variables including Chinese market characteristics from three aspects of macro,company and individual bond to conduct panel regression analysis on credit spread of sample bond issuance.Secondly,the Panel Regression Model,Propensity Score Matching Model and Switching Regression model were used to further analyze the relationship between underwriters' reputation and credit spread of bond issuance,and the results obtained from the analysis of different models were compared for more convincing conclusions.Thirdly,considering the significant differences between state-owned enterprises and other enterprises,this paper studies the different effects of the popularity of underwriters on the financing costs of the two types of enterprises.Finally,in order to get more instructive and feasible suggestions,this paper discusses and further explores the main factors that should be considered when the issuer hires underwriters.Through analysis,this paper mainly draws the following conclusions:The results of the multivariate panel regression analysis show that: first,the panel regression goodness of fit of explanatory variables for the credit spread of bond issuance reaches 0.61,which provides a good explanation for the financing cost of corporate bonds and can be used as a reference for actual bond issuance.Second,the impact of macroeconomic factors on bond issuance price is significant and overall,and the impact on different bonds is small.Third,due to the existence of implicit government guarantee,the financing cost of state-owned enterprises is significantly lower than that of other enterprises about 60 BP.There is a local implicit guarantee in the bond market.The default of a certain province's bonds will affect the government credit of that province,thus increasing the financing cost of other enterprises in that province.The default of an issuer in one province will significantly increase the financing cost of other enterprises in that province by about 10 BP.Fourth,in this paper,the problems of default clause was analyzed,and the analysis results show that investor protection clause to add do not meet the protection of investors,in turn,reduce financing costs due effect,this may be related to the factors of endogenous,which regulators require qualification low issuer add this clause.By using panel regression model,propensity score matching model,endogenous transformation model,three kinds of model respectively analyzes the relations between underwriter reputation and the cost of financing,in considering the issuer-underwriters match,on the basis of endogenous a consistent conclusion: underwriter reputation will help decrease the cost of issuing corporate bond financing,lower qualification issuer can reduce the cost of more.This paper attributed this conclusion to the "recognition role","publicity role" and "underwriting role" of high prestige underwriters.In addition,the popularity of underwriters has a reducing effect on the issuing cost of both state-owned enterprises and non-state-owned enterprises,which is stronger for non-state-owned enterprises.Non-state-owned enterprises can reduce their issuing cost to a greater extent by seeking to cooperate with high-prestige underwriters to issue bonds.By analyzing the difference between the actual credit spread and the assumed credit spread in the endogenous matching model,this paper proposes that when selecting underwriters,highly qualified issuers should mainly consider their own size,asset-liability ratio,issuance scale and issuance mode.On this basis,low-qualified issuers should also take into account such factors as profitability,listing status,industry,nature,location of default,etc.The popularity of underwriters can help make up for the disadvantages of these factors and reduce the financing cost of issuers.At the end of this paper,according to the conclusion,this paper puts forward suggestions for market construction,bond issuers,bond investors and underwriters,and points out the future research direction in view of the shortcomings of this paper. |
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