Analysis The Factors Affecting The Choice Of Debt Financing Instruments

Equity financing and debt financing, which including bank loans and bond financing, consist of the financing structure of enterprises. For a long time, due to various factors of economy, political system and ideology, the development of the financing market enterprises in our country is extremely unbalanced:indirect financing excessively relies on bank loans, equity financing of direct financing has been the subject financing of listing Corporation’s favor, and the proportion of direct financing of enterprises bond market is relatively low. In2004the central government issued the "opinions" of the State Council on promoting the capital market reform and stable development, clearly put forward "to actively expand the bond market, improve and standardize the issuance process, expand the scale of corporate bond issuance" policy, market development bonds actively and steadily so as to promote the coordinated development of the capital market. Since then, the enterprise bond market in our country with the deepening of financial reform has opened a new chapter. In2005the people’s Bank of the resumption of short-term financing bonds, securities and Futures Commission in2007issued a "corporate bond issuance pilot approach", then the medium-term notes this market the most dense color varieties of bonds in the inter-bank market. In2005China’s corporate bond financing scale is202.8billion yuan, in2013, the financing scale has reached3495.901billion yuan, far more than the equity financing. These debt instruments issued greatly enriched the securities investment, expand direct financing channels for enterprises, and further improve the capital market system.Along with the enterprise debt financing varieties increased and the expansion of the market, enterprise financing tool selection is also influenced by a variety of factors. Facing the market of different varieties of bonds have different regulatory patterns and distribution conditions of this situation, what are the factors which affect the enterprise’s financing way choice, how to carry out the allocation of resources between the various varieties of bonds, in recent years has caused the domestic scholar’s attention, and become one of the important issues of common concern of the circles of theory and practice. This article is to this question as the correlation analysis of developing basic point, through combing the domestic and foreign about debt financing tool choice literature, bull management system in enterprise bond market in our country special, from the two aspects of enterprise’s own characteristics and financing tool to investigate the characteristics of enterprise internal mechanism of preference change in selection of corporate bonds, medium-term notes and corporate debt and the factors affecting the choice of debt instruments. Specific research ideas are mainly divided into the following four parts of the analysis and elaboration:The first part, mainly described the development history and current situation of the bond market in China, and to the2005-2013of our country enterprise debt, characteristics and law of the development of corporate bonds, medium-term notes and issue short-term notes in the comparison and summary. Specifically, through the collection of relevant laws and regulations, from the distribution pattern and trade system combing the multi-supervision system characteristic of Chinese corporate bond market’s content, further pointed out that the current selection of China’s corporate debt financing tool for the diversity and complexity.The second part, the theoretical analysis and the research hypothesis. Based on the research and analysis of the present situation, the development of corporate bond market in China, combined with the relevant literature, and put forward the hypothesis from the financial characteristics and the bond issuer tool features in two aspects, and expounds the logic analysis of each hypothesis.The third part, mainly divided into two parts:first, an empirical study on the factors affecting the listing Corporation corporate bonds and medium-term notes selection; secondly, empirical research on the factors affecting the non-listed company corporate bonds and medium-term notes. First, public offering in the year2010-2012A shares of listing Corporation330corporate bonds and medium-term notes for the study sample, using Logistic two yuan decision set equation model, the second part puts forward the theoretical assumptions set from two aspects of enterprise features and feature variables based on bond tool. The empirical results show that, long asset maturity, good growth and credit rating high listing Corporation tend to corporate debt, asset size, high level of corporate cash flow and property rights preference of medium-term notes the state-owned listing Corporation. At the same time, the characteristics of the former than the latter bond tool performance for the large amount, high interest rates and collateral. Then, a sample of1597public issuance of corporate bonds and medium-term notes to2009-2012non-listed company chapter fifth observations as the object of study, still using the Logistic decision model to investigate the influence factors of non-listed companies, the two kinds of debt financing instruments of choice when the study found, most issuers are state-owned enterprises, in the development and Reform Commission under the supervision of the corporate debt issuers financial performance contribution period limit, net profit growth rate is high and the profit ability strong characteristic, and non-listed state-owned enterprise assets scale, high credit ratings are still inclined to inter-bank medium-term notes. Strict supervision of corporate bonds is the medium-term note issuance rate is high and there are guarantees, but the issue size, and no significant difference.The fourth part is the conclusion of the paper. Based on the empirical results above, we point out some problems of enterprise bond market in our country, and put forward the suggestion of policies.