Debt Financing and Corporate Governance: An Empirical Study Based on Listed Companies in China
This paper makes an empirical study on the governance effects of Chinas listed companies from three foundational dimensions, namely, debt financing level, debt maturity structure and source of debt. We find there is a significantly negative relationship between debt financing and market valuation of the firm. Creditor governance displays several features, such as soft constraints and weakening governance, failing to exert its appropriate role in governance effect. We also find long-term debt financing and enterprise bond financing have significant effect on corporate governance while commercial credit financing and bank loans fail to implement effective supervision and constraints on managers of listed companies. Their governance effect is weak or deteriorated, which not only fails to alleviate the problem of company agency but also aggravate the agency conflict of the listed companies to some extent. The results of this paper will present evidence for the difference between varies kinds of debt financing.
debt financing corporate governance capital structure
HUANG Wenqing
Finance Research Institute of Jinan University, P.R.China, 510632
国际会议
The 5th International Sympsium for Corporate Governance(第五届公司治理国际研讨会)
天津
英文
400-408
2009-09-01（万方平台首次上网日期，不代表论文的发表时间）