Research On Regional Corruption And Urban Investment Bond Issuance Scale And Financing Cost

In recent years,urban investment bonds have become one of the important financing channels for local governments.At the same time,they are also the largest bond varieties in the entire bond market.Under this background,the hidden debt risk of local governments has gradually increased,which has caused the central government and investors.And so on.Today,the belief of investment in urban investment still exists,and bond investors and local governments need to consider a lot of perspectives.This article mainly examines the impact of local officials' corruption and malfeasance on urban investment issuance.The main directions are two: first,The impact of regional corruption on the scale and number of issuances of urban investment.Second,the impact of regional corruption on the cost of issuing urban investment bonds.Through empirical research and analysis of China's provincial corruption data and urban investment issuance data from 2009 to 2017,this article finds two conclusions:First,the issue of regional corruption will significantly reduce the number of urban investment bond issuances and the average issuance scale in the region: There are three main mechanisms,two of which are negative and one is positive,and the combined effect of the three is negative.They are: Leading to the waste of raised funds,leading to the expansion of the scale of debt,is a positive effect;2 Corruption will increase the demand for funds by deteriorating the regional economic environment,and then increase the scale of debt,a positive effect;3 Corruption will lead to the abnormal replacement of its subsequent officials The behavior leads to a detailed administrative efficiency,and the number of bonds issued and the average size are reduced,which are negative effects;Second,regional corruption will significantly increase the cost of issuing urban investment bonds in the region.When the degree of regional corruption intensifies,the higher the coupon rate of urban investment bonds issuance,the greater the cost of issuance.The main mechanism is that corruption affects the deterioration of the regional economy,resulting in a decline in regional debt repayment ability and an increase in regional risk.Coupon rate.In addition,in the robustness test,we have considered the two factors of the degree of marketization and fiscal decentralization.After relevant analysis and testing,we found that: for the degree of marketization,the three models are stable under different degrees of marketization.The characteristics are relatively inconsistent.From the mechanism of action and empirical analysis,we have concluded that: for the scale and number of bond issuances,the model is more robust in areas with low marketization levels,and the owner has a better negative correlation and significant relationship;for bond issuance costs In regions with a high degree of marketization,the model is more robust and has a significant positive correlation.It can be logically considered that the relationship between enterprises and governments in high-market regions is better,and investors can offset the bad effects of corruption by raising interest rates;companies in low-market regions have poor isolation from the government,which cannot offset the effects of corruption.Bad impact,ultimately unable to issue bonds.Regarding the degree of fiscal decentralization,under different degrees of fiscal decentralization,the models of regional corruption issues and the number of issuances and average issuance of urban investment bonds are still robust.From the perspective of group regression,regions with higher levels of fiscal decentralization The effect of corruption on the average issuance scale and number of issuances of urban investment bonds is weaker than in areas with a lower degree of fiscal decentralization.Finally,this article enriches the thinking on the issue of urban investment bonds.The main contributions are: for local governments,how to control the corruption loopholes in the process of issuing bonds by the city to reduce the impact of regional corruption on the scale and cost of local financing;for bond investors,Under the realistic background that the golden body has not been broken,the default of the city investment may be an inevitable event.How to consider the regional debt risk from the perspective of corruption is of certain reference significance.