Analysis The Factors Affecting The Term-structure Of Corporate Bonds

For a long time, China’s financial system development is uneven: the economicactivity of over-reliance on indirect financing; the low proportion of direct financing;direct financing, bond financing, corporate bond financing small scale. The corporatebond market has become the weak link in the development of financial markets inChina. In order to improve the financial system, our government and regulatoryauthorities clearly put forward the strategic plan to vigorously develop the corporatebond market. In the future, how the company through the corporate bond market tofinance the company’s capital structure choice, balance adjustment. Corporate bondfinancing, the maturity of a bond option is an important aspect of corporate bond issuersfinancing decisions. In this paper, the duration of its assets matching theory, agency costtheory, liquidity risk theory, asymmetric information theory, theory of default risk andtax income theory influencing factors affect the period of corporate bonds selectedtheoretical analysis, the use of the corporate bonds of listed companies in China as wellas relevant financial data of listed companies on the above theoretical analysis ofinfluencing factors are empirically tested.First of all, the theory proposed with six theoretical assumptions affect the termstructure of China’s listed companies corporate bonds (1) The maturity of a bond ispositively correlated with the duration of its assets theory;(2) The term of the bonds andagency costs may be a positive correlation may also be negatively correlated;(3) Termof the bonds and liquidity risk may be related also may negatively correlated;(4) Thematurity of a bond with asymmetric information theory of negative correlation;(5) Thematurity of a bond default risk negatively correlated;(6) The maturity of a bondrelatedtax effectsSecond, the duration of the new corporate bonds issued by listed companies inChina for the explanatory variables to proxy variables for the duration of its assets, thesize of the company, the company’s growth capacity, liquidity risk, informationasymmetry, the degree of default risk, tax and other factors to explain thevariables,using multiple linear regression empirical analysis. The results found that (1) Thecompany assets period and company bonds periods significantly positive related;(2)The period of the listed company scale and company bonds is related, which verify thatthe agency cost theory; company’s growth capacity and company bonds deadline isrelevant but the result was is not significant; company asset-liability ratio, equity ratio and corporate bonds period is related to the period and the current ratio of corporatebonds negative correlation fully verify the liquidity risk theory, from this perspective.Therefore we can say the agency cost theory and the theory of liquidity risk in thecorporate bond market in China has only been a part of the verification;(3) The periodof default risk of corporate bonds positively correlated, that is, the greater the risk ofdefault, listed companies prefer to issue long-term bonds. However, the results ofempirical research Z value in the single-factor regression model period and corporatebonds negatively correlated, in the multivariate regression model showed positivecorrelation with the period of the corporate bonds. This may be because of themultivariate regression model, the impact of Z by the dilution effect of other factors.Therefore can only say that the risk of default theory has been part of the verification;(4)The top five ownership and corporate bonds period there is a significant negativecorrelation between listed companies in China, that is to say in the assumptions of thetheory of asymmetric information company factors Affecting the maturity of the bondshas been fully validated;(5) Tax rates and corporate bonds of listed companies in Chinafor a period not there is a significant correlation, indicating that China’s listedcompanies during the debt financing with little regard to the debt the tax effect.Finally, this paper presents a number of problems in China’s corporate bond marketand how to give full play to the role of good corporate bond market relevant policyrecommendations. This paper argues that in the corporate bond market in China,information disclosure to be more transparent, strengthen market supervision, but alsofor the reform of the system, such as simplifying the corporate bond issuance program.