Analysis On The Influence Of Internal Control Quality On Corporate Bond Financing Cost

With the rapid development of China's bond Market in recent Years,the issuance of corporate bonds for financing has become an important financing channel for Chinese enterprises.In recent Years,with the frequent occurrence of financial fraud scandals and major operational mistakes in listed companies,the default events in the bond Market are frequent.The subject scope of the contract expanded from non-State-owned enterprises to State-owned enterprises.A large number of defaulted bonds have severely damaged investors' confidence in investment,enterprise internal control,as an important activity in the daily operation of enterprises,plays a key role in protecting Market investors from losses.The high quality of the internal control of an enterprise means that the financial data of the enterprise is true and reliable and the enterprise operates stably.In the investment analysis of bond investors,whether they take the internal quality of enterprises into consideration,and make reasonable pricing pricing is the focus of this paper.In this paper,on the basis of combing a lot of related research,the study discuss deeply on the influence mechanism and function path of internal quality control to the debt capital?At the same Time,this paper also discusses the impact of the property right nature of enterprises on the relationship between the two and the role of bond credit rating in the whole process.Then the paper concludes that the quality of internal control generally affects the cost of corporate bond financing through direct and indirect channels.The credit rating results of corporate bonds play an inTermediary role in this process.Based on the above analysis,this paper proposes three assumptions and establishes the model.In specific research design,this paper takes corporate bonds issued by listed companies in Shanghai and shenzhen stock exchanges from 2015 to 2019 as research samples.Then the model is built and the hypothesis is tested one by one.The Study found that:(1)The higher the quality of internal control,the lower the cost of corporate bond financing;(2)compared with State-owned enterprises,non-State-owned enterprises are more able to reduce their corporate bond financing costs by improving their internal control quality.(3)The empirical test using the inTermediary model proves the influence of the quality of the internal control of the bond credit rating on the financing cost of the company's bonds?In general,this paper not only helps investors and reLevant regulatory authorities to understand the role of enterprise internal control in resource allocation and capital Market pricing but also has practical significance to guide the effective financing of enterprises.