Research on the Fiscal Treatment Effects of Debt Financing in Retail Industry

Abstract

The retail industry in our country relies on current debt excessively for a long time, and the bank loan is its main financing channels at all time. At the same time, the bond financing is highlighted. Some financing way are main financing ways for retail industry in our country. For example, issuing financing invoice or convertible bonds and so on. But the creditors do not fully present the status and the role in company management. The structure of debt source and the structure of debt term are not reasonable, and the positive fiscal treatment effects of debt financing do not work fully in public companies in retail industry. We make a practical research on the fiscal treatment effects of debt financing of public companies in retail industry and reveal the problems through updated fiscal data of public companies in retail industry in the paper. The problems resolved by the financing policy are the problems of capital source during the process of enterprise operation. It is the most critical content in fiscal activity of contemporary enterprise. Debt financing is the important fiscal decision for enterprise. We reveal the reasons that fiscal treatment of debt financing in retail industry which have not obvious effects by following example analysis in this paper. The Design of Example Research The Choice of Sample. We chooses the fiscal data during 2005-2014 as research sample in this paper, which are the fiscal data of public companies in The shares retail industry listed at Shenzhen or Shanghai. We eliminate the public companies like ST,*ST, S*ST. The data used in this paper are from Xenophon database. We use the statistical software of Excel2007 and SPSS17.0 of Microsoft to get the following data processing and data statistics. The Choice of Variables. Type Symbol Name Variable definition depende nt variable company value ROA yield rate of total assets total gains÷total assets independ ent variable debt term SD debt rate in short-term short-term debts/ total assets LD debt rate in long-term long-term debts/ total assets debt source CD the rate of commercial credit (accounts payable+deposit received+notes payable)/total debts BD the rate of bank loan (short-term loans+long-term loans)/total debts BOD proportion of enterprise bond bonds payable/long-term loans capital structure DER proportion of property right total debts/total owns equity The Assumptions of Research. Assumption one: The debt financing in public companies in retail industry does not play its role efficiently in fiscal treatment. One of reasons is that the structure of debt term is not reasonable. International Conference on Economics, Social Science, Arts, Education and Management Engineering (ESSAEME 2015) © 2015. The authors Published by Atlantis Press 234 Assumption two: The debt financing in public companies in retail industry does not play its role efficiently in fiscal treatment. One of reasons is that the structure of debt source is not reasonable. The Model Building. According to the analysis above, we establish regression model blew to inspect the fiscal treatment effects of debt financing in public companies in retail industry, ROA = β0 + β1 SDi+ β2 LDi+ β3 CDi+ β4 BDi + β5 BODi+ β6 DERi+ ei(i=1、2、3...14;). β0 in this model represents constant term, and i represents company, and ei is random disturbance term. The Analysis of the Result of Example Research Descriptive Analysis. The Structure of Debt Term. The contents in the table below are the structure of debt term of normal public companies in public company of retail industry during 2005-2014. Descriptive statistics N Minimum value Maximum value Mean value Standard deviation Varianc e LD 667 .1449860 .8407010 .514329114 .1601034913 .026 SD 667 .0000000000 000140 .3415300000 000000 .0525460704 64777 .0734538374 48403 .005 Effective N (list state) 667 We can find several points from the table above, and the mean value of long-term debt proportion is higher than the mean value of short-term debt proportion apparently. The minimum value of short-term debt proportion almost is zero. The term structure of debt financing in certain companies tends to the way of long-term financing. We can also find that the fluctuations of standard deviation of both LD and SD are steady. The Structure of Debt Source. The contents in the table below are the structure of debt source in public companies in retail industry during 2005-2014. Descriptive statistics a The year N Mean value Standard deviation Variance Measure of skewness Statistics Statistics Statistics Statistics Statistics Standard error 2004 CD 57 .3808697356 .19741362337 .039 .529 .316 BD 57 .4444180186141 .23058459716051 .053 -.130 .316 BOD 57 .228070175483224 .423317841540784 .179 1.331 .316 Efficient N(list state) 57 2005 CD 59 .4073566458 .20478308455 .042 .269 .311 BD 59 .3932864130848 .22905691831325 .052 .023 .311 BOD 59 .254237288150851 .439169291792576 .193 1.158 .311 Efficient N(list state) 59 2006 CD 58 .4273322813 .22086989834 .049 .246 .314 BD 58 .3776660147414 .24257322351473 .059 -.043 .314 BOD 58 .155172413809926 .365231199921059 .133 1.956 .314