Study On The Correlation Between The Interest Rate And The Corporate Value Of Chinese Listed Companies

Interest rate,as an important means of regulating and controlling the macro-economy,will undoubtedly have a significant impact on the financing costs of enterprises.With China stepping into the process of interest rate liberalization,whether a company can reasonably make big decisions and adapt itself to the changes in the market has become a concern of most business managers.This paper,from the perspective of interest rate policy,studies the asymmetry effect of the change of interest rate on the capital structure of listed companies in our country.After the outbreak of the financial crisis in 2008,the frequent adjustment of interest rates in our country has practical significance in studying the impact of interest rate policy on the firm value of listed companies in China during the period.This paper,on the theoretically basis of analyzing the transmission mechanism of interest rate to corp0 rate value,puts forward the hypothesis that interest rate policy has a significant negative impact on firm value and the assumption that the capital structure has an intermediary effect.Secondly,this paper selects the strongly balanced panel data of 755 listed companies that can obtain valid data from 2008 to 2015 as a sample,and conducts an empirical study on the effect of interest rate policy on corporate value based on the correlation analysis and the unit root test.The study concludes that there is a significant negative correlation between the interest rate and firm value,which is consistent with the research hypothesis.Based on the results of the empirical research,this paper puts forward some suggestions respectively from the macro-interest rate policy and the enterprise,provides theoretical guidance and evidence support for our government on the interest rate policies and for the enterprises on how to adjust the capital structure for the enterprise under the established interest rate policy.