The Impact Of Bank-Enterprise Linkage On The Debt Financing Cost Of Listed Private Enterprises

Enterprises are self-financing producers and operators.Debt financing costs are an important factor affecting their profit and loss.Therefore,companies are committed to reducing their own debt financing costs.The "Working Plan for Reducing the Cost of Real Economy Enterprises" issued by the General Office of the State Council and the "Guiding Opinions on Multiple Measures and Efforts to Alleviate the High Cost of Financing Enterprises" have put forward some specific and clear recommendations to reduce the debt financing costs of enterprises.In order to reduce the financing burden of enterprises,they can be lightly loaded and better serve the society.However,the debt financing costs of some companies were still high,which seriously hindered their sustainable development.This phenomenon was even more prevalent in private enterprises that had made tremendous contributions to China’s national economy.On November 1,2018,General Secretary Xi Jinping at the private enterprise symposium,especially stressed the need to gradually reduce the debt financing costs of private enterprises,and help private enterprises to solve the problem of expensive financing.It can be seen that reducing the debt financing cost of enterprises has become a problem that both enterprises and governments care about and urgently need to solve.In recent years,many scholars at home and abroad have studied the impact of bank-enterprise linkages on corporate financing constraints,loan availability,and debt maturity structure.However,there were little literatures on the impact of bank-enterprise linkages on the cost of private enterprise debt financing.Therefore,this paper studied the relationship between bank-enterprise linkages and the cost of private enterprise debt financing,and further studied the similarities and differences of this relationship in enterprises supported by different scales and industrial policies,and had certain innovations.This not only enriched the literature research on bank-enterprise linkages and debt financing costs,but also provided certain theoretical guidance for private enterprises to reduce debt financing costs,which had certain practical and theoretical significances.The first part was an introduction.This part mainly combined the research background of financing difficulties and financing of private enterprises in China,and deeply analyzed the necessity of private enterprises to reduce their debt financing costs by establishing the relationship between banks and enterprises,and expounded the research purposes and research significances of this paper.Through combing and summarizing relevant literature research at home and abroad,and grasping the latest research trends,the innovations of this paper were obtained.The research ideas of this paper were clarified and the research framework of this paper was established.The second part was the discussion of the definition and theoretical basis of related concepts.This section focuses on the specific definition of related concepts such as bank-enterprise linkage s and debt financing costs;At the same time,it analyzed the influence mechanism of bank-enterprise association on private enterprise debt financing cost based on relevant theoretical basis,and constructed the theoretical support framework for research.The third part was the research design.The main contents of this part were as follows: According to the analysis of the theoretical basis,three research hypotheses were proposed,and the research variables were defined.The relevant data of the private enterprises listed on the A-share main board of Shanghai and Shenzhen Stock Exchanges in 2013-2017 are selected as sample observations.Established a multiple linear regression model.The fourth part was the analysis of empirical results.The main contents of this part are: Descriptive statistical analysis of sample observations,correlation analysis between variables,multiple linear regression analysis and robustness test by Eviews 8.0,the conclusions of this paper were drawn,and some strategy recommendations were proposed according to the research conclusions.The fifth part was the summary and outlook.This part mainly summarized the research of this paper.Based on the conclusions of the research and the limitations of the research,the future research prospects were proposed.The conclusions of the paper were as follows:(1)Under the same conditions,the bank-enterprise association would have a positive impact on the debt financing costs of private enterprises,that was,the bank-enterprise association can reduce the debt financing cost of private enterprises;(2)in the case of other conditions being consistent the positive impact of bank-enterprise linkages on the financing costs of small-scale private enterprises was significantly greater than that of large-scale private enterprises.(3)Under the same conditions,the positive impact of bank-enterprise associations on the financing costs of private enterprises that were not supported by industrial policies was significantly greater than that of private enterprises that were supported by industrial policies.It can be seen that private enterprises can reduce their own debt financing costs by establishing bank-enterprise linkages,and appropriately expand their own scale and engage in industrial policy-supported industries.