Medium-Term Bill Issuance Policy, Financing Constraints And Corporate Performance

Compared with the international developed countries,China's medium-term notes issuance started late,which was officially launched in April 2008,however,in the few years,it has gone through rapid development.Until the end of 2016,there are 1144.61 billion-yuan medium-term notes issuing in that year,which are more than 10%of the total issuance of bonds.Medium-term notes and short-term financing bonds and corporate bonds together constitute China's corporate debt financing market three pillars.Therefore,it is of great practical significance to explore the impact and transmission mechanism of medium-term paper issuance policy on corporate performance on development of economic,meanwhile,this process can provide theoretical basis for China's financial policy reform.Secondly,this paper chooses the performance of the company and the scale of the company as the explanatory variables and the control variables.At the same time,this paper selects the financial indicators to measure the performance of the company and the scale of the company by referring to relevant scholars.Next,this paper filters and classifies the samples to get 307 listed companies' 2003-2016 financial data as final samples.After obtaining the sample data,this paper uses the method of factor analysis to analyze and deal with the data,and finally obtain the comprehensive score of company performance and company scale.Thirdly,based on the research topic and the related theoretical analysis,this paper constructs the relevant empirical model and carries on the empirical analysis.This paper chooses the credit rating as a measure of financing constraints,and based on the theoretical characteristics of public policy research,this paper regards the policy implementation as the intervention group,and the credit rating of the enterprise as the control group,constructing the DID model to study the impact of medium-term bill issuance policy on corporate performance.Then,based on the investment-cash flow sensitivity theory,this paper puts the investment expenditure and cash flow into the DID model to explore the transmission mechanism of the medium-term notes issuance policy to alleviate the financing constraints and improve the performance of the company.Finally,this paper divides the sample company into two industries of industry and service industry,and uses the DID model which has been constructed to study the difference of policy effect on the performance of medium-term notes in different industries.Fourthly,according to theoretical analysis and empirical analysis of the results,this paper draws the following conclusions:Firstly,the implementation of medium-term note issuance policy can improve the performance of listed companies,and the policy effect mainly affects the higher credit rating of the company.Secondly,the policy effect improved the company's investment and operating efficiency to mitigate the company's financing constraints and then promoting the company's performance.Thirdly,the policy effects are different between the different industries,the implementation of medium-term notes promoted the more performance of industrial enterprises than performance of service industry enterprises.Finally,based on the results of theoretical analysis and empirical analysis,this paper puts forward relevant policy suggestions from macro and micro aspects:the government should vigorously promote the innovation of financial policy,expand the financing channels of enterprises and enrich the structure of bond market,meanwhile,enterprises should actively improve their own Credit rating,grasp the investment opportunities rationally,make use of corporate funds reasonably,and promote the development of enterprises firmly,and ultimately realize the mutual promotion and common development of financial policy innovation and market economy reform.