Monetary Policy Shocks、Quality Of Information Disclosure And Debt Financing Research

Chinese government officials have been talking about the so-called "new normal" for quite some time. The State Council has held frequent councils to take actions to solve enterprise’s financing problems. Meanwhile, PBoC, CBRC, CSRC, Ministry of Finance have issued guidance recently including financial support, government support, broadening financing channels and financial innovation, in order that relieve financial distress. Under the current economic conditions, it will be important that exploring enterprise’s debt financing problems. In imperfect domestic capital markets, most enterprises mainly depend on debt financing but equity financing. In order to access to external finance, enterprises must improve the quality of information disclosure. Shenzhen Stock Exchange has evaluated all listed companies quality of information disclosure for decades, which provide incentives to explore information disclosure and debt financing under the new normal conditions.Firstly, the paper reviews related literatures about monetary policy and debt financing, information disclosure and debt financing. Secondly, the paper describes the status quo of debt financing in domestic enterprises and the policies and means of macro regulation and control. Thirdly, based on all public companies in Shenzhen Stock Exchange, the paper explores the effect of both monetary policy shocks and the quality of information disclosure on debt financing; we find that, the higher the quality of information disclosure become, the greater the size of debt financing will be, the longer the debt maturity will be, and the lower the debt cost will be; when monetary policy shocks happen, increasing quality grade of information disclosure contributes to mitigating negative effects of tight monetary policy on debt financing.