A Comparative Research On The Influence Of Enterprises Investment Efficiency By Bond Financing And Bank Lending

Corporate debt financing ways mainly include the following several types: commercial credit, bank lending, corporate bonds. And corporate bonds is the rapid developing debt financing from2007in China, bank lending is the main debt financing in the listed company of China. Bond and bank lending financing ways have a different contract mechanism, bond is based on the market contract, and bank lending is based on financial intermediary contract. This determines the bond is "hard constraints", and bank lending is "soft constraints". As a result, they develop different debt governance effects, mainly in cash flow constraints, and bankruptcy threat on both sides, so that will produce different economic consequences.The study found that, through bond financing, the investment efficiency of the enterprises’improved significantly. But by choosing bank lending, enterprises investment efficiency is not improved. Compared with the influence of the bank lending financing on enterprises investment efficiency, the effect of bond financing is more significant. Those enterprise which growth, higher corporate reputation, lower management risk, smaller information asymmetry degree, the larger companies tend to bond financing. And other enterprises which asset liability ratio is higher, the lower growth, lower credibility, higher operation risk, the higher degree of information asymmetry, tend to choosing bank loan financing. But these is no significant correlation between return on equity and the two types of debt financing, maybe it’s due to good business benefit enterprise can choose more ways of financing. Besides they obtain fund from endogenous, they have the access to equity financing.As a whole, bond financing plays a better filtering effect, so there is a good project for good business at a lower cost to obtain financing, inhibiting excessive investment, and improving the investment efficiency. At the stage in the development of corporate bond market, we have to be strictly limited to bond issuers, maintain a "high threshold". At the same time, we must improve the system of bond rating and bankruptcy to ensure bond financing makes better governance effect.