The Empirical Research On The Influence Of Financial Development Level On Corporate Debt Financing

Now China’s capital market is imperfections, the financial system has defects. When making financing decisions, most enterprises just prefer to equity financing not debt financing, which led to the emergence of debt financing shortfalls. The value of financial leverage to maxmize the interests of shareholders has not been fully reflacted. Enterprises’ financing way will have a direct impact on the capital structure, directly affects long-term development. With the development of financial market and the improvement of the financial system, enterprises need to rethink the rationality of capital structure and change the preferences of equity financing. Through the study of the paper, enterprises should clearly recognize the impact of financial environment and the financial development on debt financing, adjusting the capital structure properly.Based on the above background, the paper selects financial development data and listed companies financial data from 2008 to 2013, along with debt ratio and long-term debt ratio as explained variables, financial scale, financial structure, financial efficiency as financial development indicators and enterprises scale, profitability, growth, mortgage assets and area as five control variables to build time series models. Using the unit root test and regression analysis to make empirical analysis on the influence of financial development level to enterprise debt financing. Analyse weather financial development level and enterprise debt financing status exist regional characteristics in the meantime.The results show that: the financial development and the debt ratio present regional characteristics but not debt structure; there was a significant positive correlation between financial development level and the debt ratio, but negatively correlated with debt structure; enterprises scale, profitability and mortgage assets promote debt financing; The positive correlation between enterprises growth and debt ratio is not significant, but significant negative correlation with debt structure; regional less effects of debt financing. Based on the conclusion, the paper puts forward proposals of optimizing financial system from expanding the financial scale, development of diversified financial institutions, improvement of the financial efficiency and optimize the financial environment.