Empirical Research On The Impact Of Banking Competition On Corporate Debt Financing

Banks are an important financing channel for Chinese enterprises.As the banking industry continues to deepen reforms,the impact of changes in its market structure on micro-architects has become a hot issue that everyone is concerned about.The current research on banking competition and corporate financing in the literature mainly focuses on the construction of financing constraint models,exploring the mitigation effect of banking competition on corporate financing constraints,but no consistent conclusion has been reached,and the mechanism of action has not yet been discussed..In order to further explore the impact and mechanism of banking competition on corporate debt financing,this article details the impact of banking competition on corporate debt financing into three aspects: debt financing scale,debt financing cost,and debt financing term,and then analyzes banking competition in depth.How it affects corporate debt financing and the degree of impact.This article obtains the financial data of China's A-share listed companies from 2010 to 2018 from the CSMAR database,and uses the banking institution's financial license information announced by the China Banking Regulatory Commission to calculate the banking competitiveness of 334 prefecture-level administrative regions in China and register with the company Make a match.Based on the information asymmetry theory and industrial organization theory,this paper puts forward research hypotheses and empirically analyzes the impact of banking competition on corporate debt financing.After the overall analysis,this paper also conducts group tests based on the nature of property rights,location and size,and analyzes in depth whether the impact of bank competition on corporate debt financing shows heterogeneity.The regression results show that the banking industry competition has an inverted U-shaped relationship with the scale of corporate debt financing and a positive U-shaped relationship with the cost of debt financing,that is,within a certain range,the increase in the level of bank competition is conducive to expanding the scale of corporate debt financing and reducing debt financing.Cost,after the inflection point,the intensified competition in the banking industry will have a negative impact on these two aspects;the banking industry competition and the debt financing period have a negative correlation,indicating that the increase in the degree of competition in the banking industry will not increase corporate borrowing proportion.The group test results show that the impact of banking competition on debt financing is relatively more significant in non-state-owned enterprises,central regions,and small-scale enterprises.This article further enriches the literature on the economic consequences of bank competition and related fields such as debt financing.