Market Reform On Interest Rate,Corporate Risk And Corporate Cost Of Debt

The financing cost is the issue of academic research, bank loan is an important channel for corporate debt financing. The research of corporate debt capital cost especially bank loan financing cost of enterprise has important significance. October 2015 China’s interest rate marketization reform has been basically completed, before the interest rate marketization reform, China practices a strict interest rate regulatory policy, benchmark interest rate directly determined by the central formulation rather than the market supply and demand.Deposit and loan interest rates must also float within the prescribed scope, the commercial bank loan pricing ability is low, interest rates lack of flexibility and targeted, the implementation of the interest rate differential is often not by enterprise risk or credit rating decision, but led by the policy tendency. From 2004 began to release the loan interest rate cap regulation is an important step in the market-oriented reform of interest rate in our country, in gradually relaxed controls on interest rates in the process, an enterprise to obtain commercial bank loan interest rate and its level of risk in what kind of changes will happen?Credit discrimination is a common concern of Chinese scholars, the nature of different property rights of enterprises, the relationship between the cost of debt capital and its own risk level is different?For the purpose of this study, in theory, we analysis of the period of interest rate regulation and deregulation of interest rate of commercial banks credit policy(from the pricing policies,customer choice and risk control perspective), and different property rights corporate finance background(from soft budget constraint and credit rationing theory analysis). In the empirical part, based on the previous research results about the factors affecting the cost of corporate debt capital, the empirical model is constructed. Choose Shanghai and Shenzhen stock markets all A-share non-financial listed companies in 2002 to 2014 data as the study sample, and according to the research method of Tao Xionghua in 2002 to 2014 the marketization of interest rate measure, using the Atman Z value model to evaluate enterprise risk degree, value each year, the degree of marketization of interest rates and the enterprise’s own risk as interaction terms of regression analysis, the study found that increased corporate debt capital cost and enterprise’s own risk associated with the advance of market-oriented interest rate reform. Further all the listed companies in accordance with the ultimate control right is divided into the state-owned enterprises and non state-owned enterprises, to explore the differences of different property rights of corporate debt capital cost and its risk,empirical conclusion that an increase in the risk of their own, the debt of state-owned enterprises provided the magnitude of the rise in the cost of capital is smaller than the non state owned enterprises.