Religious Atmosphere 、Internal Control Quality And Dept Financing Costs

In our country,debt financing plays a pivotal role in various financing methods.According to the 2017 data,its share in the financing market is about 94.13%,which has an unparalleled effect on the capital needs of various types of enterprises in China.At the same time,as its overall size continues to expand,it is a high debt financing cost.At the level of residents’ one-year deposit interest rate of about 1.5%,the average debt financing cost of enterprises is as high as 8%.Therefore,how to reduce the cost of debt financing has become a hot spot in academic circles at home and abroad in recent times.Based on this background,the topic of strengthening the construction of internal control systems was raised.A large number of scholars’ research also shows that the internal control system,as one of the typical representatives of formal institutional arrangements,has indeed played a huge role in reducing the cost of corporate debt financing.However,this is only based on the formal system level.Due to the diversity of cultures and institutional differences in the world,this measure may not be applicable to all countries or we need to seek more explanations to deal with this issue.Especially for countries like China with more than 5,000 years of splendid civilization,the informal systems of religion,culture,customs,and old examples accumulated in the long-term historical evolution have at least helped cultivate the soil in which the formal system grows and functions.Or,in conjunction with the formal system,promote the evolution of society in parallel.Therefore,studying the impact of informal institutional arrangements on capital markets is also extremely realistic and theoretical.This paper selects 15527 sample year data of China’s A-share listed companies from 2008 to 2016,and uses the combination of empirical research and normative research to use religion as a typical representative of informal institutional arrangements to study its formal institutional arrangements and capital markets.The interaction between the two.The conclusions are as follows:(1)In areas with strong religious atmosphere,the quality of internal control of enterprises will be improved;(2)The stronger the religious atmosphere of the enterprise,the lower the debt financing cost;(3)Further research shows that the religious atmosphere One of the ways to influence the cost of debt financing is through the improvement of the quality of internal control---the mediating effect of internal control quality;(4)the construction of religious and internal control systems,as informal institutional arrangements and formal institutional arrangements,respectively.Two typical representatives are complementary in their effects on the economic consequences of capital markets represented by debt financing costs.That is to say,while strengthening the construction of formal institutional arrangements,we must not neglect the construction of informal institutional arrangements.The two must be coordinated and grasped in order to maximize their effectiveness.The above conclusions are still valid after a large number of inspections.The structure of this paper is as follows: The first chapter is the introduction,introduces the research background and research significance,expounds the research ideas and research methods,and lists the research framework,pointing out the innovation of the article.The second chapter combs the relevant domestic and foreign literatures from the aspects of the economic consequences of internal control quality,the influencing factors of debt financing costs and the governance role of religious atmosphere,and lays a foundation for the subsequent research design.The third chapter begins with the concept and definition of internal control quality,debt financing cost and religious atmosphere,and the path of mutual influence,and introduces the relevant theoretical basis.The fourth chapter is the hypothesis deduction,based on the religious governance mechanism and internal control governance,the nature of debt financing costs,put forward four hypotheses.The five to seven chapters are respectively for research design,test analysis and conclusion.