| Fund is the carrier of the production cycle. A necessary condition for thesurvival and development of enterprises is to try to lower the cost of obtaining thenecessary funds. The financing problem is always the key problems faced byChina’s Listed Corporation. At present, domestic and foreign scholars have begun toexplore the structure of financing and capital structure from the perspectiveof enterprise life cycle. From the current market environment, to break the financingproblem is still an important research direction. Financing model order selection hasits practical significance.Debt financing is the predominant source of new external funds for Chinesecompanies. New debt financing comes from two primary sources: banks and publicdebt offers. The main purpose of this research is to explore the determinants of debtinstrument choices including the issuing cost, information asymmetry, agencyproblem, credit quality, managerial ownership. Moreover, this study also tries toidentify the characteristics of firms which is in different corporate lifecycles thatadopt different debt instruments. The binary logistic regression model is employed totest the hypotheses of the study.The empirical results show that firms in different corporate lifecycles may havedifferent debt financing strategies. And the factors of issuing cost, agency problemhave significant influence on the choice of new debt instruments between the publicand private debts. It is found that enterprises with smaller debt demands, highergrowth opportunities are much inclined to choose the mode of bank loans when theyare faced with the demand for debt financing.We finally give suggestions to regulatory authority, banks, investors and the firms through the regression model results. |
