A Study for the Relationships of the Banking Loans, the Ratio of R&D Expenditure Ratio and the Performance of Debt Enterprises

This study researches the relationships among the banking banks, the ratio of bank loans, the characteristics of debt enterprises, performance of debt enterprises, and the R&D expenditure ratio of debt enterprises from the perspectives of corporate governance and information asymmetry. Many public listed companies have abilities to borrow capital from direct financial market with bonds, but they still lend capitals from banks with private debts. The enterprises with higher R&D ratio may have higher growth potential, which may keep good relation with their banking banks for communicating the growing massages to outside investors and reducing the problem of information asymmetry. The banking banks may monitor the operation of enterprises will influence the performance of borrowers. The research finds the debt enterprises with higher bank loan ratio have higher market performance and lower financial performance. The higher bank loan ratio may transfer the good operating information of the debt firms to the market investors and to reduce the information asymmetric problems. The result also shows the R&D expenditures ratio and debt ratio all have significantly negative impact on financial and market performance of the debt enterprises. The information asymmetric problems do exist for the outside investors