Research On The Influence Of City Brand On The Cost Of Corporate Debt Financing Of Non-listed Companies

After the Securities Regulatory Commission relaxed the conditions and restrictions on corporate bond issuance in 2015,non-listed companies can also use corporate bonds to conduct financing activities,and the channels for raising funds have been further widened.At present,the issuers in China's corporate bond market are dominated by non-listed companies.For most of China's non-listed companies,corporate bonds occupy an important part,both in terms of scale and number of issues.Therefore,the research on the influencing factors of corporate bond financing costs is of great significance.After observing the financing cost of corporate bonds issued by non-listed companies,this paper finds that there are obvious regional differences in financing costs.In this regard,scholars are most concerned about the impact of information asymmetry between investment and financing on bond financing costs,mainly from the perspective of the information production capacity of the financing,but mostly ignore the location background of the company.The process of participating in the production and exchange of information by a regional organization in the city is ignored.This article considers the city brand as a comprehensive indicator of various factors in the location of the company,and studies its process of participating in the production and transmission of information in financing activities.The interpretation of market financing cost differences provides a new perspective.In terms of theory,this paper introduces the spatial transmission model of information to clarify that in the process of urban brand participation in information transmission,its signal strength depends not only on the generation system of the city brand-the amount of source resources for the city brand's ability to build,but also inseparable.City brand communication system——the ability of multiple media to publicly output signals.Both of them determine the strength of city brand signal strength.Then it explains that the nature of the enterprise's embeddedness in social network determines that its economic activities are affected by various factors in the city.These factors are perceived by the market to form the city's city brand.Then it explains the two ways that city brands display information to reduce the cost of corporate bond financing:(1)By increasing the proportion of public information in the bond market,it can help investors obtain some private information about companies in the capital market with asymmetric information,thereby identify the average asset quality of local enterprises and make value judgments;(2)As endorsement of the value of local enterprise assets and credit enhancement for bonds,it can provide investors with a commitment and guarantee.In terms of empirical research,this paper selects 906 corporate bond-related data issued by non-listed companies in 57 cities from 2016 to 2018 as a sample,and uses a mixed OLS estimation model that controls industry and time fixed effects to affect non-listed companies in urban brands.The theory of the financing cost of corporate bonds has been empirically tested,and it is concluded that:(1)city brand index has a negative correlation with the corporate bond financing costs of non-listed companies;(2)the signal generation abilities of city brands can significantly reduce financing costs and among which,the city's economic level,infrastructure level and science and education level have a significant impact on financing costs;(3)the signal transmission abilities of city brands also significantly reduces financing costs,of which network and experience communication have a significant impact on financing costs;(4)compared with signal transmission abilities,signal generation abilities of city brands have a more profound impact on reducing bond financing costs.