The Research On The Function Of Debt Governance In Listed Companies

Debt financing is one of the most important financing methods , which play a vital role in the corporate governance. There are three major resource in debt fundraising , including bank debt, commercial credit and corporate bonds. The paper makes a study on the governance effect in both of theory and empirical aspects. From the theory angle, the governance effect is established on the base of corporate governance and debt financing , which is show to the agency cost effect, free cash flow effect, stock structure effect , controlling effect and governance results effect in details.Taking our listed companies between year 2000-2009 as investigation subjects , studies the present fundraising situation on both of short and long debt . And also taking the listed companies whose corporate bonds maturity beyond last quarter of 2009, as investigation subjects between year 2005-2009, studying their debt structure and coming to the conclusion: there exist a debt fundraising grade priority which is following the bank debt, commercial credit and corporate bond in our listed companies.Furthermore, the paper set an empirical modal to text the governance effect brought from the bank debt, commercial credit and corporate bond. The results show that neither of three debt structures has strong influences on the corporate governance of debtors, because the bankruptcy mechanisms are inadequate, the government intervene too much on the banks and there is no prefect system of commercial credit evaluation and the bond market is not prefect and so on . Finally, respectively for the above reasons ,we propose corresponding measures and constructions to solve.