The Relationship Between The Strength Of Financial Connection And Corporate Debt Financing

With the continuous expansion of China 's private capital and the improvement of the domestic financial market system,the State Council and relevant regulatory agencies have gradually unlocked the shackles of private capital investment in the financial industry.As a result,more and more physical enterprises have begun to realize financial connections by holding financial institutions,thereby obtaining financing convenience and diversified operations.In this context,it is of great significance to study the relationship between the strength of financial linkages and the level of corporate debt financing.This article adopts a writing method that combines theoretical analysis and empirical research.In the part of theoretical analysis,this article first summarizes previous studies,sorts out related theories of corporate debt financing and its influencing factors,and analyzes the causes of financial linkages and the general impact mechanism of financial linkages on corporate debt financing.On this basis,the different mechanisms by which high-strength financial linkages and low-strength financial linkages affect corporate debt financing are further discussed.In the empirical research part,this paper takes the data of non-listed financial institutions held by listed entities in 2009-2018 as a sample,and establishes a multiple regression model to empirically test the relationship between the strength of financial associations and the level of corporate debt financing.The research conclusions of this paper are as follows: The relationship between the strength of financial associations and the level of corporate debt financing is not a simple linear relationship,but a U-shaped relationship.That is to say,under the low-intensity financial connection,the financial connection strength is negatively correlated with the corporate debt financing level;under the high-intensity financial connection,the financial connection strength is positively correlated with the corporate debt financing level.In addition,the impact of financial ties on corporatedebt financing mainly comes from banking financial institutions.At the same time,this article puts forward the following suggestions based on the above conclusions:For the managers of enterprises,the realization of financial ties through the proper holding of financial institution shares can bring financing convenience to enterprises.When a company does not have suitable investment opportunities,financial ties can increase the company's return on capital on the one hand,and on the other hand can reduce the excess credit funds that the company reserves in advance for possible future investment opportunities,thereby reducing the level of corporate leverage;For institutions,in order to solve a large number of destabilization problems in the current capital market and reduce cross-risks between the financial industry and the physical industry,it is necessary for regulators to have a higher degree of financial connection,that is,shares of financial institutions holding shares Many listed companies exercise strict supervision to prevent them from improperly interfering with the normal operations of financial institutions and turning financial institutions into their own "cash machines."...