Financial Development Level,information Quality And Debt Financing Cost Of SMEs

Debt financing accounts for a significant proportion of the financing of enterprises in developing countries.The reason is that developing countries in the level of economic development,economic system construction and financial development level and other aspects of the developed countries there is not a small gap,which led to corporate financing of developing countries is relatively narrow,and enterprises are facing greater constraints in the financing process.China is the world's second largest economy,the economy has been in high-speed development,the gap between the level of financial development is getting smaller compared with developed countries,but the development of China's capital market is still relatively slow,a serious imbalance in the supply and demand of credit,enterprises are facing higher debt financing costs,especially the high debt financing costs of SMEs.The cost of debt financing for SMEs in credit markets is often affected by a variety of factors.And one of the most important factors is the disclosure of information quality.For investors,the quality of debt disclosure information disclosure is an important indicator of assessing the borrower's risk by the investors.For the enterprises with debt financing,the quality of the information disclosure is the signal that the enterprise communicates the business status of the enterprise.This signal can change the information asymmetry between the enterprise and the investor,thus affecting the enterprise's debt financing cost.In the process of collating the previous literature,this paper has found that many scholars have made a study on the impact of the quality of information disclosure on the cost of debt financing,and put forward the corresponding suggestions.In the past years,many studies have pointed out that the quality of information has a linear relationship with the financing cost of listed companies.In addition,the relevant literature also mentioned that although the level of development of China's financial industry is not high and the regional differences are relatively large,but it still able to impact on the debt financing costs of SMEs.This paper is based on the theory of predecessors and inherited the research ideas of predecessors.First of all,it starts from the quality of information and studies its impact on the financing cost of SMEs.Whether there is a significant correlation between the quality of information and the financing cost of small and medium-sized enterprises.If there is a significant correlation with them,then whether the improvement of financial development will significantly affect the relationship with them? If there is an impact,what is the impact? This paper is based on the above questions,and takes the enterprises on NEEQ as the research object,combined with empirical research methods for the following research:(1)to study the quality of information disclosure on the impact of small and medium enterprises debt financing costs.Further study the impact of information quality on the cost of debt financing of state-owned small and medium-sized enterprises and private SMEs.(2)To study the influence of the improvement of financial development level on the relationship between the quality of information and the debt financing cost of SMEs and to study the relationship between the improvement of financial development level and the cost of information of enterprises with different property rights influences.The results show that:(1)In the case of other conditions,the "U" relationship between the quality of information disclosed by SMEs and the cost of debt financing is very low.When the level of information of SMEs is low,It has the motive to improve the quality of information in order to reduce the information asymmetry between investors and thus reduce the cost of debt financing,and the cost of debt financing of SMEs will be reduced with the improvement of information quality.However,when the quality of information is higher than a certain level,the SMEs will have the motive to manipulate the information to obtain the low-cost debt financing.At this time,the debt financing cost of the SMEs will decrease with the decrease of the information quality.The relationship between the quality of information disclosure of private SMEs is also significant,but there is a significant negative correlation between the information quality of state-owned SMEs and the cost of debt financing.(2)The improvement of financial development level can enhance the "U"-shaped relationship between the quality of information and the cost of debt financing of SMEs,that is,to improve the positive correlation between information quality and debt financing cost The negative correlation between the quality of information and the cost of debt financing.In addition,the improvement of financial development level can also enhance the "U"-shaped relationship between the quality of information and the financing cost of private SMEs to a certain extent.However,for state-owned SMEs,the improvement of financial development level And the negative correlation between the quality of information and the cost of debt financing.The research of this paper not only enriches the theory of debt financing cost of SMEs,but also provides reference for the country to improve the debt financing of SMEs by strengthening the supervision of credit market.