The Degree Of Market?Social Audit And Debt Financing Costs

To daily business operations and development,to ensure that the money is enough,in the face of debt financing and equity financing,the enterprise will be more preferred because of the advantages of debt financing this way.And companies want to borrow at the lowest cost.Companies operating through financial reports to convey to the world and the high level of social audit can significantly reduce the risk of bank credit default,then lower borrowing costs,increase the company's debt financing.But after reading literature can be found that its role in social audit by a series of environmental factors,namely the market process,namely the degree of government intervention,the regional financial environment and legal environment and so on all of its effect.In areas where high degree of market of more complete free market,the government less interference to Banks and enterprises,so that it can help its role effective social audit.It based on the information theory,principal-agent theory,the optimal sequence financing theory,the soft budget constraint theory as the support,the enterprise external audit effect on the company's cost of debt financing on the different degree of market is studied,the empirical analysis to compare the different degree of market on the impact of social audit on debt financing cost differences,market degree from the macroscopic factors and microscopic factors two aspects of social audit to measure the debt financing cost of company,The correlation between market degree,social audit and debt financing cost is studied.A total of 7,876 sample data were selected from Shanghai and Shenzhen share listed companies from 2014 to 2016,and the impact of market degree and social audit on corporate debt financing was analyzed.The research shows that the degree of market and social audit are closely related to the cost of corporate debt financing after controlling the company size,net interest rate of total assets and asset-liability ratio.The higher social auditing level can help to alleviate the information asymmetry between the Banks and enhance the creditor's trust in the enterprise,thus significantly reducing the debt financing cost of the enterprise.In addition,the degree of market of listed companies in China is positively correlated with the level of social auditing,and the degree of marketh negative influence on the cost of debt financing.And the higher degree of market and the higher level of social audit can help the private enterprise credit financing.These findings enrich the experience of social auditing and corporate debt financing,andalso have a certain practical significance.