Strategic Difference,Internal Control Quality And Corporate Debt Financing

At present,our country is still in the early stage of its financial market transformation.As the primary source of financing for domestic corporations,bank credit rationing still has a huge market gap.Financing difficulties and high financing costs are still the major problems in the development of the real economy.The existing research shows that domestic enterprises with credit demand can only passively wait for the bank’s choice.The debt financing situation of the company is actually a reflection of the bank’s credit behavior preference.Based on this,the theoretical and practical circles look for the influencing factors of corporate debt financing from many aspects such as corporate governance,executive characteristics and macro environment,but few scholars have discussed from the perspective of the company’s strategic positioning.In fact,with the improvement of China’s marketization level and the promotion of enterprise modernization management,the importance of strategy for corporate financing and development has become much more prominent.The company’s strategic choices that deviate from the industry’s routine can enhance its competitive advantage and obtain certain excess returns,but at the same time increase the uncertainty of business operations,and make enterprises face higher levels of performance volatility,extreme performance and operational risks.And the important basis for the bank to provide credit supply is the judgment of the debtor’s potential risk and corporate value.Therefore,whether the adoption of the unconventional strategy by the enterprise will cause the creditor’s attention through the internal conduction path with increased operational risk and make the creditor form different credit decision preferences towards companies with different strategic differences,which affects the debt financing ability and debt financing cost of enterprises,become the major contents of this thesis.In addition,this thesis also focuses on the internal risk management tools,and further discusses that whether the high-quality internal control can weaken the risk expectations caused by creditors’ strategic differences,and thus weaken the relationship between strategic differences and corporate debt financing.Based on the conclusions obtained,this thesis puts forward some constructive opinions for Chinese enterprises to optimize their strategic positioning and control operational risks to alleviate the financing dilemma,which have certain theoretical significance and practical value.The first part is the introduction,aiming at opening a topic,to elaborate the realistic background and theoretical value of the research problem in detail,and to introduce the main research contents,methods and possible innovations and contributions of this thesis.The second part is the literature review.On the basis of reviewing and generalizing the past literature on internal control,strategic differences and corporate debt financing,this thesis expresses some opinions on the existing results of related research,and defining the research perspective that can be enriched in this thesis.The third part is the theoretical basis and research hypothesis.Based on the strategic management theory,information asymmetry theory and risk compensation theory,the logical deduction is carried out,and the internal relationship between strategic difference and corporate debt financing is analyzed.In this part,research hypotheses are proposed and the adjustment effect of internal control quality in the relationship between the two main variables is further explored.The fourth part is the research design.The empirical model of this thesis is established with reference to the existing research,the sample selection,data source and the variable definition and measurement are also explained in this part.The fifth part is the empirical test and the result analysis.The basic situation of each variable is demonstrated by descriptive statistics and correlation analysis.The above assumptions are verified by regression analysis and robustness test to ensure that the empirical results are stable and reliable.The further research,in this section,also verifies the mediating effect of the operational risks in the relationship between the two main variables.The sixth part is the conclusions,inadequacies and enlightenment of the research.This part put forward the conclusions of this thesis basing on the whole research,and give corresponding policy recommendations like that the supervision department should improve the strategic information disclosure system of Chinese enterprises and reduces the information asymmetry between the enterprises and stakeholders.Besides that,the shortcomings,limitations and the future research directions for further exploration in related fields of this thesis are also pointed out in this part.This thesis treats all eligible A-share listed companies of the Shanghai and Shenzhen Stock Exchanges from 2007 to 2017 as a research sample.After empirical tests,the main conclusions are as follows:(1)Under the same conditions,the strategic difference is an important factor affecting corporate debt financing.The increase of strategic difference will significantly weaken the debt financing ability of enterprises and increase the debt financing cost of enterprises;(2)Internal control quality will significantly weaken the relationship between strategic differences and corporate debt financing;(3)Operational risks has played a mediating role in the relationship between strategic difference and corporate debt financing.The innovations and contributions that may exist in this thesis include:(1)Enriching the relevant research on the economic consequences of strategic differences and the influencing factors of corporate debt financing,and deeply examining the inherent conduction path of strategic differences affecting corporate debt financing,and supplementing the existing literature on creditor lending behavior preferences.(2)Putting strategic difference,internal control qualityand corporate debt financing into the same framework to conduct research will help companies to make good use of risk management tools,optimize internal control systems,and make rational strategic adjustments and resource allocation to maintain ideal debt financing capabilities and debt costs.And this thesis also has certain value for expanding the cross-sectional study between the company’s non-financial information and capital market financial decisions.