Empirical Study On The Impact Of Earnings Management And Credit Rating On Bond Financing Cost

The Central Committee of the Communist Party of China pointed out in the "13th Five-Year Plan" and the 19 th National Congress report that the first is to vigorously develop China's bond market,the second is to increase the proportion of direct financing in China's capital structure,and the third is to strive to promote capital.The market is healthy and diversified.The issue of bond financing costs has always been an important research topic affecting the development of the bond market.The earnings management issued by bond issuers and the credit rating issued by credit rating agencies are two important factors affecting the cost of bond financing.But can the bond market identify the bond issuer's earnings management behavior? Can major credit rating agencies produce a true and effective credit rating report with objective and fair principles? Therefore,based on the perspective of earnings management and credit rating,this paper explores the impact of the two on the bond financing costs.This paper adopts the combination of theoretical analysis and empirical test.Firstly,the corporate bonds listed on the Shanghai and Shenzhen Stock Exchanges in the fourth quarter of 2015-2017 are selected as empirical research samples,and the samples are sorted and screened.Description;Secondly,according to the related theories such as principal-agent,contract,information asymmetry and signal transmission,combined with the institutional characteristics of China's bond market,the paper puts forward four research hypotheses;again on the empirical part,the modified Jones model and Roychowdhury are used respectively.The model measures the degree of earnings management manipulation.On the other hand,it uses the valuation method commonly used at home and abroad to quantify the subject's credit rating and debt credit rating.Finally,after quantifying the main variables,the model is constructed based on the research content of this paper.The regression model was used to test the four research hypotheses in this paper.Through empirical analysis,the conclusions of this paper are drawn:(1)The degree of accrued earnings manipulation in earnings management is positively related to the financing cost of corporate bonds,but the relationship between the two is not as significant as expected,but the degree of real earnings manipulation It has a positive relationship with the financing cost of corporate bonds and is significant.(2)The main credit rating of the bond issuing company and the debt credit rating are both negatively correlated with the financing cost of the corporate bond.(3)The bond financing cost of listed companies is generally lower than that of non-listed companies.At the same time,according to the research conclusions of this paper,the relevant policy recommendations are put forward from the four aspects of bond issuers,bondholders,credit rating agencies and market supervision departments.In addition,the research deficiencies and prospects of this paper are pointed out.