Corporate Financing is an important strategy of corporations and plays a significant role in the survival,development and risk management of a company. In developed countries,which have market economies,funds raised from capital market are an important source of corporate financing,in which the proportion of bond financing is much higher than that of stock financing.
With the establishment of the market economy and modern corporate governance,Chinese companies are gradually becoming real manufacturers of products in every sense,who can make their own decisions and take responsibility for their decisions as well. Financing is an inevitable problem in the process of marketization and globalization. As sub markets of the capital market,the bond market and the stock market should develop in coordination;however,the bond market,in particular the corporate bond market in China is falling behind the process. As for the structure of the capital market,the bond market is not equal to the capital market,in terms of either size or instruments. Following the trend of structural changes in the capital market,taking the advantages of the growth of institute investors who are becoming the main role of the capital market,the development of the bond market is an inexorable outcome in the adjustment of the structure of the capital market. Therefore,in accordance with advanced finance theo
ries,drawing enlightment from experiences of foreign countries,the research on corporate bond financing will contribute theoretically and practically to both the growth of Chinese corporate bond market and finance risk management.
The methodology of this dissertation is a combination of theoretical analysis and empirical deliberation. According to economic theories and the theory of corporate finance,I give a great deal of consideration to the theory of corporate bond financing,at the same time present practical research on the current situation of the corporate bond market,in which comparisons are drawn. Under present domestic situation,drawing lessons from foreign countries,I summarize current problems in the progress of the corporate bond market,and propose creative institutional arrangement on how to improve the domestic bond market. More details about the security,the efficiency of the market,invention and usage of derivative instruments,risks of corporate bond financing and how to avoid them are expounded as well.
The dissertation is organized as follows:
Chapter one is " Theory of corporate financing and the market election of corporate financing". It includes an introduction of theory of corporate financing and elaboration of the essence and structure of corporate financing. On the basis of the comparison of the markets in which corporations raise funds,cost analysis and analysis of the decision-making methodology of corporate capital cost,I come to the
conclusion of market election in corporate financing. In terms of taxation effects,leverage effects,the advantages of the cost of bond financing and its coordination with corporate governance,I discuss the function of corporate bond financing and analyze practical problems from utilizing the western corporate finance theories in Chinese companies.
Chapter two is " Inspirations from international corporate bond financing". Based on my study of American corporate bonds,American municipal bonds and the development of Asian corporate bonds,I discuss the lessons we can learn from these experiences.
Chapter three is " The current situation and problems of domestic corporate bond financing". This chapter contains the origin,the developing process of Chinese corporate bond and its current features. I analyze the dilemma of corporate bond financing,the obstacle in its development and some other aspects such as bonds issuing marketing,circulation,redeeming,taxation law,market supervision and institute investors fostering. Recommendations on solving these problems are given.
Chapter four is " The development and evolution of Chinese corporate bond financing". Starting from the ne