Research On Internal Control Quality And Debt Financing Cost Of Private Listed Companies In China

In recent years,China's market competition environment with China's rapid economic development and social progress has become more and more intense.Listed private enterprises usually face the problem of expensive and difficult financing.When the enterprise's debt financing cost is high,the listed private enterprise needs to bear more management pressure.If listed private enterprises can have a certain understanding of their own internal control,and can improve the relevant internal control system,they can reduce their own financial risks to a certain extent,thereby enhancing creditors' confidence in the investment of enterprises,to get a lower cost of debt financing.This paper studies the relationship between the internal control quality and the cost of debt financing in private companies.This paper selects the data of private companies listed in China from 2008 to 2018 as a sample to analyze the relationship between the quality of internal control and debt financing cost.In addition,the relationship between the internal environment(growth)and the external environment(government behavior)is analyzed.Through empirical analysis,we find that the higher the quality of internal control of listed private enterprises,the lower the cost of debt financing.And the growth enterprise will face certain management risk,and its development is uncertain,aggravated the enterprise financing risk,but high-quality internal control can alleviate the growth of private enterprises debt financing problems.It is found that the government will strengthen the protection of listed private enterprises,reduce the possibility of default,and weaken the impact of internal control quality on the debt financing cost of listed private enterprises.And this paper through the Kangsheng shares,Tianqi shares for further research and discussion,case analysis results better support the research hypothesis.Finally,combined with the relevant theoretical analysis,empirical results and case results of listed private companies to reduce the debt financing costs of the relevant recommendations.