The Study Of Interest Cost Effect Of Financial Certification On Enterprise Bond Market

Bonds as a kind of credit products,its success have direct relationship with the issuer's credit.Because of the information asymmetry,credit of the corporate bond issuers is hard to convey to each investor and to be recognized.On one hand,investors risk will increase,on the other hand it also raise the cost of the issuer.This will definitely affect the development of corporate bond market.Studies have shown that in the mature financial market financial certification institutions provide third-party authentication mechanism for bond issuers,reduce the information asymmetry between issuers and investors so that reduce issuers' financing costs.On the basis of predecessors'research on theory of financial certification,this paper applying the theory of financial certification to the corporate bond market in our country,research the effects of financial certification to corporate debt financing costs,certification role of the Certification body and the construction of financial infrastructure related to the bond market in our country.This paper use real interest cost model to build a multivariate regression model of bond financing costs and financial certification and relevant variables,and empirical analysis the effect of financial certification to enterprise bond market of China and different categories of corporate bonds,then investigate the development of financial certification.The empirical results show that financial certification will play a greater role with the constant improvement of China's financial infrastructure.Underwriter reputation?rating agency reputation and the main body credit rating all have a good certification effect.Bond issuers can choose above authentication ways to reduce the information asymmetry with investors and the cost of financing.Finally this paper analysis bond rating and guarantee which certification effect is not obvious,to find the reason and put forward development suggestions.