The Impact And Mechanism Of Interest Rate Liberalization Reform On Debt Financing Cost Of Listed Enterprises In China

Market-oriented interest rate reform,is to support China’s reform and opening up and the financial industry one of the key change point of social and economic transformation and upgrading,is China’s financial system reforms necessary options,in promoting China’s resource structure optimization,China’s economic structural adjustment,and in the process of market economy and the outside world further,occupy the important position and plays an important role.Non-state-owned enterprises and small and medium-sized enterprise financing difficulties,financing your problems has been a pain points of corporate financing in our country,also reform the governance of our country government related department attention points,the People’s Bank of China and silver circ on the China financial stability report and other documents,clearly put forward to reasonable and effective dredge the transmission mechanism of monetary policy,We will ensure that financial service resources are allocated to the "last mile" of the real economy at an early date,so as to reduce financing costs for enterprises and foster a virtuous economic and financial cycle.Therefore,since the implementation of interest rate liberalization reform,the impact of interest rate liberalization reform on enterprise financing has become one of the focus issues of many scholars.Therefore,based on the above background and literature review,this paper mainly analyzes the influence and mechanism of interest rate liberalization reform in2013,which abolished the floor of loan interest rate,on the debt financing cost of Chinese enterprises.The panel data of China’s A-share listed companies from 2010 to2020 are taken as samples.Taking the interest rate liberalization reform of removing the floor of loan interest rate issued in July 2013 as a policy variable,this paper constructs a quasi-natural experiment and uses the fixed effect differential model to conduct an empirical test.The research finds that: Removing the floor of loan interest rate significantly reduces the debt financing cost of listed companies;The impact of the reform on the debt financing cost of large-scale enterprises,enterprises with high profitability and enterprises in eastern China is particularly obvious.It mainly reduces the overall debt financing cost of enterprises by lowering the loan interest rate for high-quality enterprises and easing the financing constraints of non-high-quality enterprises.Based on the above research conclusions,this paper gives policy suggestions from three perspectives: government departments,commercial banks and the company itself.The research results of this paper are conducive to further clarifying the impact of interest rate liberalization reform,namely,removing the floor of loan interest rate,on the debt financing cost of enterprises and its internal mechanism.At the same time,relatively feasible suggestions are put forward based on the status quo of interest rate liberalization reform.It has certain reference value to evaluate the implementation of related policies such as the abolition of the lower limit of loan interest rate,the reform of interest rate liberalization,and the reduction of debt financing cost of enterprises.