The Impact Of Corporate Financial Factors On The Credit Spread Of Urban Investment Bonds

With the deepening development of our economy and the accelerating urbanization process,urban construction investment bonds as urban public infrastructure construction of important financial tools,began to play an important role,especially after the financial crisis in 2008,the city of various provinces and cities in our country for debt rise rapidly,also attracted many scholars devoted to urban construction investment bonds related theory research,research mainly focus on the national scope of inner city for debt and credit risk for enterprise operation and development of city.But fewer researchers analyze specific areas within the scope of the urban construction investment bonds.In central areas of China,accelerated significantly in economic development,at the same time as the implementation of the strategy of rise of central China and advance of the construction of the regional financial center in central China,city investment bond issuance amount is increasing.Due to the close relationship between urban investment companies and local governments,local governments will provide guarantees for the repayment of urban investment bonds.The rapid development of urban investment bonds will undoubtedly exacerbate the local government debt crisis.The promulgation of the new budget law in 2014 made local governments no longer have a rigid payment responsibility for urban investment companies.The impact of the financial operations of urban investment companies on the credit risk of urban investment bonds became particularly important.So this article will cast debt city in central China as the research object,select the six provinces of central city in 2008-2018 vote for bond issuance data as the research sample,to explore the influence factors of city for bond credit spreads.Combining the research conclusions of existing scholars on macro factors,debt factors,and local government factors,this paper mainly analyzes the impact mechanism of urban investment bond credit spreads from the perspective of urban investment enterprise financial factors to combine the development of urban investment bonds in the central region.The empirical research in this paper is divided into the following three parts:(1)Establish a research model on the impact of financial factors on the urban investment bond credit spread before the promulgation of the new budget law,in which the correlationbetween operating cash flow and credit spread is not strong,This shows that in the early stage of the issuance of urban investment bonds,investors did not consider the financial factors of urban investment companies too much when identifying the default risk of urban investment bonds.(2)After the promulgation of the new budget law,the research model of the impact of the financial factors of urban investment companies on the credit spread of urban investment bonds is more significant.The relationship between financial operations and bond default risk is becoming increasingly close.(3)Classify the bond guarantee situation and establish a regression model according to the different bond guarantee situations.It can be understood that the difference in bond guarantee conditions will make the financial factors affect the credit spread.The difference shows that investors can be linked to the bond guarantee situation when analyzing financial factors in the future.According to the financial risk problems faced by urban investment companies in the central region and the relevant empirical conclusions drawn,this article puts forward the following three suggestions: First,to increase the attention of urban investment company managers to financial factors,prudent supervision,and improve the quality of financial statements.Investors should pay more attention to the financial operation of the enterprise when preventing the default risk of urban investment bonds;Second,the business operations of the two city investment enterprises should be diversified to enhance the profitability of the company;Third,clarify the responsibilities of both the city investment enterprises and the local government.The city investment enterprises should gradually adapt to market competition,improve market operation efficiency,and reduce excessive dependence on local governments.The government should increase the protection of investors and establish and improve the management system of local financing platforms.