Research On The Influencing Factors Of Debt Financing In Power Industry Listed Companies

The power industry is an important pillar industry in China,its leverage ratio is high constrained by industry characteristics in long time.It is great practical significance to research the influencing factors of debt financing on improving the financing structure of the power enterprises and reducing the enterprise leverage ratio to meet the supply side reform.On the basis of literature research,this paper analyzes the status quo and existing problems of debt financing in power industry with the two types of debt financing methods such as bank loan and corporate bond.Combining with the theory of capital structure and information asymmetry,this paper selected the influencing factors of debt financing modes based on the characteristics of the power industry,and empirical analyzed the influencing factors of different debt financing.In this paper,the data of 67 listed companies in the power industry from 2011 to 2015 are used as the panel data,and the multiple linear regression model is used to analyze the influence of different factors on the financing mode selection.The empirical results show that the long-term loan is positively correlated by the significant effect of the firm size,profitability,solvency,asset mortgage value and agency cost,and the asset mortgage value is the greatest impact on the choice of bank loan.Corporate bonds are affected by the size of the firm,company credit quality,profitability and investment opportunities.Company credit quality and investment opportunities have the greatest influence on the choice of bonds as the financing decision.The study found that the reason why power companies tend to choose long-term loans as the most important way of debt financing is the high asset mortgage value and the agency costs incurred by government supervision.Electricity companies can improve the financing structure by reducing bank reliance,developing bond markets and reducing agency costs.