A Study On The Impact Of Short-term Financing Bonds On Corporation Value

In May 2005,China restarted the issuance of short-term financing bonds.Short-term financing bonds were an attempt to innovate financial instruments in China,and it's emergence has changed the situation of short-term debt financing has been mainly relied on the short-term loans from banks over the years,and provided a new channels for enterprises to raise short-term funds.Short-term financing bonds have been sought after by the market once launched,with its lower financing costs,simple procedures and relatively flexible distribution.Since the issuance of the first batch of short-term financing bonds on May 26,2005,as of the end of 2016,in the less than 12 years,the short-term financing bonds issued a total of 10912,and the cumulative financing scale reached 15,234.675 billion,far higher than other direct debt financing instruments.Although China's short-term financing bond market started late,the issuance volume and financing scale grew extremely rapid in the past ten years,and short-term financing bonds has become an important financing channels for Chinese enterprises.Short-term financing bonds has a very important significance on corporate finance.Whether enterprises raise fund through short-term financing bonds have an impact on corporation value?If there is an impact,what is the mechanism?The discussion and solution of these problems can provide a reference for enterprises to make more rational financing decision of raise funds through short-term financing bonds,and also conducive to the healthy and orderly development of short-term financing bonds market.This paper take the short-term financing bonds as a research object from a new perspective,and combined the short-term financing bonds with corporation value,and use normative analysis and empirical test to explore its impact on corporation value and the possible mechanism of action.On the basis of relevant researches about short-term financing bonds and corporation value,this paper analyzes the influence of short-term financing bonds on corporation value.Firstly,the paper analyzes the rationality of the impact of short-term financing bonds on corporation value,and then analyzes the possible mechanism and results.Finally,the paper verifies the theoretical analysis through empirical analysis based on the panel data of 112 listed companies in China from 2010 to 2014,and focus on the impact of short-term financing bonds on corporation value.The empirical results show that there is a one-way Granger causality relationship between short-term financing ratio and price-to-book ratio,and short-term financing ratio is one of the reasons for price-to-book ratio.The short-term financing ratio is negatively correlated with price-to-book ratio,and the correlation is significant at 10%level,in other words,short-term financing bonds have a negative impact on corporation value.On the basis of theoretical analysis and empirical test,and take regulations and the present situation of China's short-term financing bonds into consideration,this paper discovers that many factors restrict the short-term financing bills to a certain extent and put forward some policy recommendations to promote the development of short-term financing bonds market.This paper is a new attempt to combine short-term financing bonds with the corporation value.Although the paper expands the scope of research on short-term financing bonds to a certain extent,there are still many shortcomings in the study for various reasons.This paper failed to clarify its specific mechanism of action,and just provide a reference for future research,and we look forward to follow-up research will make greater innovation and breakthrough on the problems raised by this article.