Research On The Impact Of The “Belt And Road” Initiative On Corporate Bond Financing Costs

Since the issuance of corporate bonds,it has played an important role in supporting key areas and investment in key projects.It has also provided financing for state-owned enterprises at all levels and private enterprises,and its ability to serve the real economy has been continuously strengthened.As China's economic growth slows down and uncertainty increases,the environment faced by enterprises becomes more complex.Against this background,the proposal of Belt and Road Initiative has both realistic significance and strategic vision,and has different influence on different regions.Belt and Road Initiative construction has a huge capital demand,in addition to sovereign guidance funds,bond market is another important breakthrough.Considering that the implementation of the Belt and Road Initiative generally forms a good investment environment,whether this will reduce the cost of issuing corporate bonds,and how should enterprises grasp the policy and promote their own development in the financing strategy.Therefore,this paper studies the impact of the proposal of Belt and Road Initiative on the financing cost of domestic corporate bonds,based on the basic situation of the development of the enterprise bond market in our country.The paper takes the corporate bond as the main object,measures the financing cost by the credit spread,adopts the quasi-natural experiment of the Belt and Road Initiative and uses the Difference-in-Differences model.The results show that compared with non-key provinces,the Belt and Road Initiative can significantly reduce the financing costs of corporate bonds in key provinces.On this basis,the paper further examines the heterogeneity of the main characteristics of bond issuance,and probes into the cross-sectional differences of the Belt and Road Initiative in reducing the credit spreads of corporate bonds in key provinces by adopting the method of sub-sample regression.The results show that the main reasons for reducing the cost of corporate bond financing in key provinces are those with strong profitability,large fund-raising space and high level of cash holding.Then,a series of robustness tests,such as parallel trend test,placebo test and so on,are carried out in this paper,and the tool variable method is used to alleviate the possible endogenous problems.The research in this paper provides possible reference for issuing enterprises,especially enterprises in key provinces,to consider how to reduce the financing cost of corporate bonds from their own point of view.