The Empirical Study On Debt Financing Choice Of Chinese Listed Companies

According to MM theory, if there is no transaction cost and the total cash flow from the company to its creditors and shareholders will not be affected by capital structure choice, the capital structure choice will not influence the company's value, that is, capital structure choice is neutral. It can ratiocinate that under the same hypothesis the debt displacement structure will also not influence the company's value. However, the existence of revenue duty, bankruptcy costs, agency costs and interest rate uncertainty breaking down the series of presuppositions of MM theory gives birth to the debt displacement structure to maximize the company's value. Western scholars have paid attention to the company's debt financing structure since 1980s.Compared with classical capital structure theory, the research on debt financing structure is still in the development and improvement level.Domestic scholars have focused on this field in recent years.However,emphasizing on the research of debt maturity structure, they paid little attention to that of debt displacement structure. Therefore, the research of debt displacement structure has academic and practical meaning. This thesis focuses on the acedamic and empirical study on the determinants of Chinese listed companies'debt financing choice.This thesis firthly analyses the corporate governance effect and agency cost of debt financing, construct a model to illustrate that the optimal capital structure results from the balance between the agency cost of equity and debt; then taking into account of western researches and combining Chinese specific situation, selects such factors as issuing cost, growth opportunity, information asymmetry, credit quality, debt leverage, state-owned shares and industry regulation as determinants of the choice of debt financing of Chinese listed companies and applys the Mann-Whitney U test and Binary logistic regression to examine these determinants, the results show that debt choices of listed companies in China are influenced by growth opportunity and information asymmetry, while other factors such as issuing cost, credit quality, debt leverage, state-owned shares, industry regulation have small impact. Compared with the determinants of foreign companies, it exists great difference. This manifests the financing behaviors of listed companies in China are comparatively immature, thus the improvement of relative fiancing systems is of great urgency to standardize their financing behaviors. Therefore, the thesis put forward suggestions to improve corresponding financing system, including bond market, corporate governance structrure, enterprise bankruptcy law and information disclosure system.