Study On Enterprise Bonds Financing In China

In the developed market economy, enterprise bonds financing is replacing share financing and becoming a predominant direct financing method. It also becomes more and more important in the external financing channel. In China, however, the enterprise financial structure presents a totally different character. The enterprises depend too much on banks in the external financing channel, as well as they prefer share financing to bonds financing in the direct financing structure. This leads to a limited financing channel, bad financing efficiency, and irrational capital structure, which place our enterprises in an uncompetitive situation after China's access to World Trade Organization. In this manner, it is urgent to stimulate China's enterprise bonds financing. We can foresee that it will become an important financing method for China's enterprises in the near future.As most domestic scholars study this topic from enterprise bonds market perspective, this dissertation tries to analyze enterprise bonds financing strategy from the enterprises' point of view. This dissertation is composted of the following four parts.The first part describes the enterprise bonds financing theory. In the beginning it introduces the modern capital structure theory, which includes the famous MM capital structure model, predominant Trade-off Model, the Packing Order Theory and Signaling Model. Then summarizes the practical factors influencing the capital structure. After that the dissertation compare the enterprise bonds financing with other financing methods, especially the bank financing and share financing.The second part analyses the cost and the risk in enterprise bonds financing and the relevant problems. It describes the calculations of the enterprise bonds' price and cost, then analyses the risk involved in it, and gives the corresponding controlling methods. At last it introduces the rating of the enterprise bonds.The third part discusses the design and publication of enterprise bonds. For the designing part, it gives out the definition at first, and then describes the basic elements and kinds of enterprise bonds. For the publication part, expounds the qualification, standards, the methods and the procedure of the publication.The last part reached the conclusion of the dissertation. It starts from the enterprise bonds financing strategy. Then it analyses the environment of market, legislation and systematic of China's enterprise bonds financing. Based on that, it came to the conclusion and provided the suggestion about how to improve the environment.