Research On The Influence Of Debt Financing Of Listed Companies Participating In Financial Institutions

In recent years,with various policies promulgated by the state,private capital has been encouraged to enter the financial field.The phenomenon of listed companies starting to hold shares of financial institutions by means of equity investment has mushroomed.There are a lot of cases about industrial capital entering in the financial field.In this context,this article screened out the non-financial A-share data listed on the China's Shanghai and Shenzhen Stock Exchanges in 2012-2016.A total of 1,323 companies were the subjects of the study.After empirical analysis of 1323 listed companies' participation in financial institutions,what are the changes in the company's asset-liability ratio and debt maturity structure?Firstly,this paper introduces the classical hypotheses about the capital structure and debt maturity of foreign companies in research,and lists six classical theories about capital structure and debt maturity structure.Secondly,this article sorts out the literature on the effects of listed companies' participation in financial institutions on corporate debt financing.In order to better analyze the influence of listed companies' financial institutions on corporate debt financing,this paper analyzes the current status of debt financing of listed companies in China,first analyzes the development status of China's bond market,and compares the bond market in recent years.The development of the equity market.Secondly,relevant data on asset-liability ratios and debt maturity of listed companies in China during 2007-2016 were collected and compiled,reflecting the debt financing trends of listed companies in the past decade and the trend of changes in debt maturity structure.After studying the influence of listed companies' participation in financial institutions on the company's capital structure and debt maturity,this paper puts forward two hypotheses: First,after the listed companies participate in financial institutions,the higher the ratio of participation,the higher the leverage ratio of the company;Second,after a listed company participates in a financial institution,the higher the proportion of equity participation,the lower the proportion of corporate long-term debt financing.In this paper,we choose 1323 non-financial A shares listed on the shanghai and Shenzhen stock exchange for 2012-2016 years,this paper makes an empirical study of 1323 companies,so as to ensure the reference value of the results of the empirical analysis.Through the use of panel data for individual fixed effect analysis,empirical results are obtained and the two major hypotheses proposed in the previous section are tested.Concluded as follow:After a listed company holds shares in a financial institution,it can establish three ties for financial institutions: control ties,interest ties and communication ties.Control ties are the ways to improve the company's own control by becoming shareholders of the held financial institutions.Interest ties are listed companies forming a community of interests through participating financial institutions.The ties of communication mean that the information asymmetry between financial institutions and listed companies is mitigated after the listed companies participate in financial institutions.Through the joint efforts of these three ties,it will be easier and smoother for companies to obtain debt financing,the asset-liability ratio of enterprises will be improved,and the capital structure will be optimized.By participating in a financial institution,listed companies can change their debt structure in addition to optimizing their capital structure.After empirical analysis,long-term debts with higher financing costs will be more reluctant to choose,and short-term debts with lower financing costs will be more easily acquired after listed companies participating in financial institutions.In addition to the two explanatory variables,in terms of control variables,the higher the shareholding ratio of listed companies for financial institutions(4)9)?7)(9),the higher the company's asset-liability ratio((1).The listed company's asset-liability ratio((1)is negatively correlated with the listed company's profitability(),default risk((5),and operating cash flow share().The higher the ratio of listed companies to financial institutions(4)9)?7)(9),the lower the proportion of the company's long-term debt to total debt().The proportion of the company's long-term debt to total debt()is negatively related to the listed company's profitability((),default risk((5),and operating cash flow share(().Finally,through the analysis of empirical results,we will provide advice and suggestions on how to encourage and guide industrial capital to enter the financial sector,such as establishing laws and regulations,strengthening the supervision of financial institutions and enterprises,and establishing a stable and long-term cooperative relationship between enterprises and financial institutions.After the country proposes a new type of policy to reduce the leverage ratio of enterprises in 2017,listed companies should more reasonably participate in the participation of financial institutions and arrange financial industries,thereby helping companies to ease financing pressures,optimize the structure of debt maturity,and provide reference for rational financing decisions.