Research On The Impacts Of Holding Equity Of Financial Institutions On Corporate Debt Financing And Debt Structure

With the continuous growth of China's financial market scale in recent years,many listed companies choose to hold shares in financial institutions in the form of equity investment..By the end of 2016,there were 570 non-financial A share listed companies holding shares in seven types of financial institutions,in which banks are the focus of investment.According to the data of the Chinese entrepreneur survey system,20.4% of the companies surveyed hold shares in financial institutions.Under the background of gradual infiltration of industrial capital into financial institutions,it is of great significance to analyze the impacts of holding equity of financial institutions on corporate debt financing and debt structure.This paper first reviews the theory of enterprise capital structure.On this basis,it analyzes the influencing factors of enterprise debt financing,the motivation and current characteristics of the enterprise holding financial institutions,and focuses on the influence mechanism of holding equity in financial institutions on the company.In the empirical research section,this paper selects 2010-2016 years' A share listed non financial companies' shareholding data as samples,and analyzes the impacts of holding equity of financial institutions on corporate debt financing,debt maturity,and change in interest-bearing liabilities.The empirical results show that: shareholding in financial institutions will reduce the company's asset-liability ratio,optimize the capital structure;shareholding in financial institutions can increase the proportion of long-term liabilities;shareholding in financial institutions can also reduce the company's interest-bearing liabilities increment.This article mainly has three innovations.First,according to the classification of WIND,the financial institutions are divided into seven categories,then this paper analyzed the impact of different types of financial institutions on corporate debt financing and debt structure.Second,in the analysis of the enterprise debt structure,this paper takes the change in interest-bearing liabilities into account,which enriches the existing research conclusions.Third,this paper adjusts control variables based on theory in empirical research,and selects the indicators more rigorous.After the comprehensive analysis of theoretical and empirical research,this paper puts forward suggestions from three levels: enterprises,financial institutions and policy makers,to slove problems that may be involved with shareholding in financial institutions.