Research On The Impact Of Credit Rating Special Information On Corporate Financing Costs

The bond market is an important part of China's financial market.The security and healthy development of the bond market is of great significance in stimulating China's economy and promoting China's economic transformation.However,the current bond market in China is not perfect,and there are a series of problems such as unreasonable structure of the distribution subject,unbalanced investor structure,asymmetric information,and unfair market caused by the implicit guarantee of the nature of property rights.The serious obstacles to the healthy development of the bond market.Credit rating agencies are crucial to the development of the bond market,particularly credit bonds.Credit rating agencies can process complex and unordered information in the market into orderly and easily understandable credit ratings,which can effectively alleviate a series of problems in the bond market.This article begins with Special information on credit ratings,analyzes the factors that affect credit rating,and analyzes the role of Special information in the implicit guarantees that characterize the nature of property rights.A series of questions provide directions for resolution.The sample chosen in this article is a short-term financing bill that is being issued on the market as of December 31,2016.First of all,this article refers to the orthogonal decomposition method proposed by Agarwal and Hauswald(2012),which decomposes the information contained in the credit rating into open information available in the market,and the credit institutions obtained through in-depth investigation of the company.information.In this paper,first,through the regression of state-owned enterprises and non-state-owned enterprises,we find that the degree of influence of open market information is relatively greater than that of non-state-owned enterprises.In this model,we use residuals to measure the Special information of credit ratings.Then,we reverted the bond's issuance interest rate and Special information,as well as the variables that measure open information in the market,and found that the Special information of credit rating can have a significant impact on the issuance rate of debt-issuing companies,which is reflected in the ratings agencies' Special rights.Information can reduce financing costs.Finally,through the establishment of interactions between Special information and the nature of property rights,we measure the role of Special information on credit rating in the implicit guarantee of the nature of property rights.We have found that Special information and the nature of property rights have an interactive effect,and that Special information on credit ratings will,to a certain extent,diminish the role of implicit guarantees due to the nature of property rights.Then,this article returns to the state-owned enterprises and non-state-owned enterprises,respectively,and finds that the explanation of the issuing interest rate of Special information is more powerful than that of non-state-owned enterprises.In summary,we have concluded that the Special information provided by credit rating agencies will reduce the role of state-owned companies in the invisible security and reduce the unfairness caused by the nature of the company by reducing the asymmetry of information.