Industrial Policy And Corporate Debt Financing

Concerned about the efficiency of industrial development and resource allocation efficiency,to investigate the financing efficiency of enterprises in the industry,we not only need to analyze the impact of industrial policy,but also examine the impact of industry characteristics.China has a highly centralized financial system with "government influence".One of the ways in which industrial policies are implemented is the adjustment of credit structure.Banks and financial markets have different effects on industrial development at different stages of economic development.Technical and product characteristics will also affect the banking and financial markets to give different financial support for industrial enterprises.Therefore,the industry debt research in the industry concerned about the impact of industrial policy,the bank's capital supply and the impact of industry characteristics is particularly necessary.At present,the research on industrial policy mainly focuses on the economic consequences of industrial policy,and the controversy over the effect of industrial policy has never stopped.However,the existing literature on the economic consequences of industrial policy has only a good normative theory,but lacks a more in-depth empirical study.In addition,the research on the micro-effect of industry policy(industry enterprise debt)is only a preliminary examination of the impact of industrial policy on micro-enterprise debt financing,and does not show the specific performance of financial intermediary(bank)in industrial policy credit transmission mechanism Complete,full analysis and testing,nor in-depth analysis of the characteristics of the industry in the bank asset allocation in the role of the way.Therefore,this article from the perspective of bank credit supply,in-depth study of industrial policy impact on industry debt financing decision-making role of the way that is to examine the industrial policy of credit transmission mechanism;and further demonstrates the "product market competition" and"industry growth" Policy credit transmission mechanism,focusing on industrial policy,industry characteristics(product market competition,industry growth)and the two together on the impact of corporate debt financing.This paper chooses the data of A-share non-financial listed companies from 2006 to 2015 as the research sample,uses the mixed regression model and the quasi-natural experiment to test the impact of China's industrial policy on corporate debt financing,and analyzes the efficiency of bank's credit allocation under the influence of industrial policy.The analysis shows that,(1)industrial policy as a means of administrative incentives is a signal released by the government,can reveal the development prospects of different industries.The development environment of the industry enterprises that are supported by the industrial policy is better,and the bank credit investment default risk and business risk of this Enterprises is lower,so the bank will increase the credit of the industry enterprises.Compared with the industry enterprises that are not supported by the industrial policy,the debt of the industry enterprises supported by the industrial policy is higher.(2)The objective existence of industrial policy forced commercial banks to adjust the total amount of credit for the industry,making the ability of banks to diversify their loans.At this point,the bank will be more concerned about the impact of industry characteristics to lower industry credit portfolio risk.(3)the degree of competition in the product market helps banks to diversify risk.The more competitive the product market,the wider the bank audience.Then,the banks will have the conditions to achieve a diversified asset allocation to diversify the risk.So,the more fierce the competition in the product market,the stronger the effect of the industrial policy to improve the debt level of the industry.Fourth,the industry's high growth industry,the development prospects are better.When the industry policy to support such industries,often attracting many enterprises to enter the market,investment prone to "tide phenomenon".Then,under the influence of "herd behavior",banks are also willing to give financial support to these projects.So,the higher the industry growth,industrial policy to improve the level of industry debt stronger.The conclusion of the study has important implications for the effective implementation of industrial policy and the optimal allocation of credit resources.First of all,when the government in the use of indirect means of policy control,should consider the impact of industry characteristics,and according to different industry characteristics(product market competition,industry growth)to build a more reasonable and perfect financial support system.This will help the government to achieve the goal of industrial policy with higher efficiency and optimize the supply of industry funds.Second,in bank's credit supply.It must pay more attention to macroeconomic Policy,Industry Characteristics and Enterprise Financing to reduce the risk level,making the industry's funds are reasonable and effective allocation.F inally,enterprise ought to look the external policy environment and industrial characteristics as key variables in their financial early warning models,it will let enterprise make an best budget and risk maintain a reasonable range.