Research On The Impact Of Credit Policy In Tibet On Enterprise Financing Costs

Tibet Autonomous Region is one of the five major autonomous regions established in China.Since the peaceful liberation of Tibet,the state has implemented various credit policies,such as interest-free,low-interest loan interest rates,interest rate subsidies,preferential credit policies and so on,at different stages for the purpose of regional economic development,social stability and national unity.The special preferential monetary and credit policies implemented since 2001 have exerted a tremendous influence on enterprises in Tibet.This paper focuses on the impact of credit policy on the financing cost of enterprises in Tibet.Firstly,it summarizes the research results of scholars at home and abroad,and collates the relevant literature on the impact of credit policy on the financing cost of enterprises.In order to study the validity,this paper makes a clear classification of financing methods for enterprises,chooses debt financing and equity financing as the classification basis of this paper,and systematically summarizes three major theories of the impact of credit policy on financing costs:credit rationing theory,debt backlog theory.The three theories are the theoretical foundation of this paper.In order to make readers have a more intuitive impression of the credit policy and financing situation in Tibet,the third part of this paper gives a detailed description of the loan interest rate and credit investment in Tibet.While the loan interest rate in Tibet is lower than the national benchmark lending rate by 2percentage points,the growth rate of credit investment in Tibet is much higher than that in the whole country.It has a relatively relaxed financing environment.At the same time,in order to show the characteristics of Tibet’s financing situation,this paper describes the debt financing and equity financing of the whole country and Tibet separately,and selects other provinces as reference materials,fully demonstrates the financing characteristics that the Tibet’s credit funds mainly invest in non-financial enterprises and organ groups and mainly throughmedium-term and long-term loans.In this paper,the theory is combined with practice,and the fourth part selects the listed companies for empirical analysis.This paper bases on the 25 listed companies on the main board and the New OTC Market board in Tibet.because the listing time of listed companies in Tibet are late and it concentrates in the past three years,so the data is less.In order to make the research results available for reference,the author selects the number of Listed Companies in the same industry category and asset scale in non-Tibet area according to the ratio of 1:2.According to the enlarged sample size,the descriptive statistics of unbalanced panel data are carried out,and the collinearity of Pearson test and VIF test models is carried out.Fixed effect model and random effect model are constructed respectively.According to the results of BP test and Hausman test,this regression model is more suitable for fixed effect model.According to this model,regression is obtained.The results are as follows:(1)Credit policy has a great impact on the financing cost of enterprises,among which the benchmark interest rate has a significant impact on the financing cost,showing a positive correlation;the amount of money invested has a significant impact on the financing cost of enterprises,showing a negative correlation;the credit policy in Tibet can effectively reduce the financing cost of enterprises;(2)Enterprises.Flexibility also has a great impact on the financing process.Enterprise managers should do a good job in the management of financial risks,solvency and other management,further expand the production scale,effectively reduce the cost of financing.Introducing the listed companies in Tibet as examples,this paper,based on the results of empirical research,combines the development goal of building a well-off society in an all-round way in 2020 in China and the strategic policy of maintaining social stability in Tibet,puts forward suggestions from both macro-policy and micro-enterprise management,which is of high practical operation and reference value.