Study On The Determinants Of Debt Financing Structure Of Listed Companies In China

Financing is an important part of a company's financial affairs, andfinancing decision-making is an extremely important content of financedecision-making, and it can reduce financing cost and does good tomaximizing the enterprise's value.Enterprise's stockholder's rights financing and creditor's rightsfinancing constituted enterprise's financing structure, but in debt financingthe bank loan and the enterprise bond, the difference of the debt deadlineconstituted enterprise's debt structure. According to the western country'sresearch result enterprise's financing order is the interior preserves, debtfinancing, stockholder's rights financing. However, the companies in ourcountry which go on the market at present mostly use stockholder's rightsfinancing. Compared with the western developed countries, property debtrate is low, and in debt financing the short-term debt accounts for a bigproportion, and the bond financing develops slowly, but the stockholder'srights financing cost is comparatively lower than debt financing cost. Thiskind of phenomenon which disobeys with the western country's financingtheory is worth us studying and pondering.Based on the above background this article embarks from the limitof the debt financing structure concept and reviews the domestic andforeign relative debt financing structural theory. It also analyses the macroscopic factors which influence the debt financing structure fromthese five respects: the state economy development, the monetary policyand commercial bank's control, the capital market effective consummation,the legal system, the profession based on the special economic systemenvironment in our country. The result indicated that, the national economylevel of development affected the using of the long-term debt and haslimited the bond effective supplies in the certain degree, and our country'ssteady monetary policy as well as the policy control of the commercialbank loan, and it caused the short-term loan to account for a big proportionand has a obvious profession characteristic, and the bond development isunder the suppression. The non- market of the interest rate causes thecapital market signal transmission to distort, and the bank cannot screenthe enterprise's quality, and the limited potency of bankrupt law systemand the stock market's substitution effectiveness to the enterprise bondmarket caused the companies which go on the market to substitutelong-term debt with the stockholder's rights financing and short-term debt.Next, the article carries on the theoretical analysis and the real diagnosisresearch on the choice of the financing structure of the company whichgoes on the market from the company government, cost factor and therisk,the property characteristic, the financial strength from the company,company scale and some other company characteristic and so on. Finallythe result indicated: the structure of the company government, the property characteristic, the enterprise scale are the primary factors which influencethe debt financing structure from microscopic affects. Through two kindsof theories and real diagnosis analysis, the article analyses thoroughly thefactors which cause the debt financing structure to be unreasonable andputs forward the proposal and the countermeasure to optimize the debtfinancing structure.