An Empirical Study On The Influence Of Investor Protection On The Long-term Borrowing Costs Of Banks Under The Background Of Property Rights

Financing is an important financial activity of listed companies.A company will raise the various funds needed for operation through certain financing channel and financing method according to its own development strategy.Good investor protection can help investors build confidence,so as to increase the enthusiasm of investors to participate in the financing of enterprises,which will help the listed companies to achieve the goal of successfully raising funds.Due to the late development of capital market and inadequate laws and regulations in our country,law enforcement is not strong enough to form an effective investor protection mechanism,investors' interests are often violated,the problems of investor protection will also greatly affect the financing decisions of listed companies.Existing research shows that,the differences of different companies in investor protection can affect the company's external financing behavior,thus affects the capital structure of listed companies and the cost of equity capital,but there is little research on the impact of investor protection on the cost of debt capital.And the long-term loan of the Banks is an important source of debt financing for a public corporation,and it's even less of a study to discuss the cost of investor protection.So will the long-term borrowing costs of listed companies be affected by investor protection? If there is an impact,what are the mechanism and the path of action? Under the unique institutional background of our country,whether the relationship between the two varies because of the property rights of listed companies? The above questions need to be further explored and tested empirically.Based on the bank credit financing market,the paper studies the influence of investor protection on the long-term borrowing costs of the bank from two angles of theoretical analysis and empirical test.Based on the group of property rights,the paper further examines whether the relationship between the two is different from the property property of the listed companies.First,it introduces the research background,purpose and significance of the paper,and makes a literature review.Secondly,we use the relevant basic theory to analyze the influence mechanism of the investor protection level on the long-term borrowing costs of the listed company,and put forward the research hypothesis on this basis.Then,the empiricalresearch model is designed and the empirical research method is used to test the data of all A shares listed companies in Shanghai and Shenzhen two cities from 2011 to 2016,to verify the influence of the investor protection level on the long-term borrowing costs of the listed companies,and according to the property nature of the research data samples are grouped to further investigate whether the impact of this relationship will be different because of the property rights of listed companies.The empirical research results show that the improvement of investor protection level helps listed companies to obtain lower cost long-term bank loans.Compared with non state owned listed companies,the long term borrowing cost of the state-owned listed companies is relatively low.Based on the study of property right grouping,it is found that the effect of investor protection on the long term borrowing cost is more significant in non-state-owned listed companies.The property of the state-owned listed companies will weaken the signal display effect caused by the investor protection.Finally,according to the conclusions of the empirical research,we put forward some suggestions on the protection of the corporate investors,the construction of a good external market environment and the credit discrimination of private enterprises.