Research On The Impact Of Environmental Uncertainty On The Cost Of Debt Capital

Financing is one of the most important financial behaviors, It plays an important role in the rational and efficient allocation of resources. Debt financing has always been the most important source of funds for enterprises in our country. But the cost of debt does not get enough attention.However,the financing behavior of the enterprises is not a pure internal decision-making problem,It has an extremely close relationship with the development of the financial market, especially in the whole national economy. Everything is a cycle of change, A fundamental property of the physical world is uncertainty. Different from other countries,The problems in the development of economic system in our country are more complex. With China’s economic development stepping into the "new normal",and domestic environment and the international environment itself under the dual uncertainties, China’s enterprises are facing more uncertainty and more complex. In 2014 Chinese Academy in Chinese "period of strategic opportunities for development of the international environment report pointed out:" although compared with the past 30 years,Chinese strategic opportunities the future has changed fundamentally. In 2016, the report on the work of the government pointed out that China’s international and domestic factors of instability and uncertainty are significantly improved.But we will face more risks and uncertainties." China’s economic society is currently facing many new opportunities, new challenges, increased uncertainty. Actively adapt to the new normal, to strengthen the study of uncertainty, to achieve strategic goals is of great significance.The past research mainly research on the internal point of view to find the factors of capital cost, there is few researches on the factors affecting the cost of capital from the perspective of external environment. This paper selects 2011-2014 A-share non-financial listed companies data as a sample, To study the impact of environmental uncertainty on the corporates’ cost of debt capital and test the moderating effects between financial reporting transparency to the environment uncertainty and the cost of debt capital.This paper firstly sort out the relevant literatures: economic consequences of environmental uncertainty and Factors affecting the cost of debt capital and Environmental uncertainty and the cost of debt capital.Then describe the following concept:EnvironmentalUncertainty,Cost of Debt Capital,Financial Reporting Transparency, based on the resource dependence theory, information theory and information asymmetry theory of in-depth analysis, then put forward two assumptions and models. On this basis for empirical test.The results show that environmental uncertainty can significantly increase the cost of debt capital, while the high transparency of financial reporting can reduce the positive impact of environmental uncertainty on the cost of debt capital. In addition, this paper also made four kinds of robust tests, the final results of the robustness test is consistent with the previous text. Finally, this paper puts forward some related suggestions from the perspective of government, enterprises, and points out the shortcomings of the study.