The Research On The Effect Of Bond Financing On The Performance Of Listed Companies

Bond financing and stock finance are two important means of direct financing for listed companies. In the developed capital markets, listed companies raise much more capital through bond market than through stock market. And corporate bond is a financing tool that much more important than stock. The corporate bond market in China starts late. Although it has got rapid development in recent years, some problems still exist. Compared to the stock market, the development of bond market lags far behind. At the same time, enterprises in China prefer equity capital obviously. In this condition, the research on the bond financing of listed companies in China has an important significance. This article is divided into four chapters. The first chapter introduces the background, significance, thought and method and innovations and limitations. And it organizes researches of scholars at home and abroad. The second chapter is about the theories of bond financing. It introduces several related theories and analyses the effect of bond financing through model. Based on the second chapter, the third chapter does empirical research with a sample of the Chinese listed companies. The result shows that bond financing has a positive effect on the performance of China’s listed companies. The last chapter proposes some advices to develop the bond market of China:(1) Improve the corporate system and improve corporations’operational capacity.(2) Build a reasonable stock market return mechanism.(3) Propose rate liberation, bring the market pricing mechanism into full play.(4) Improve the liquidity of corporate bond, establish a market maker system.(5) Enrich bond products, increase innovation.(6) Improve the credit rating system, strengthen the built of financial infrastructure.(7) Improve the system of investor protection.(8) Establish a unified and efficient regulatory system, strengthen the construction of the bond risk system.