The Theory Of Debt Governance

At present, there are so many mature papers which focus on the debt governance. This paper tries to illustrate the effect of debt governance, not only strengthening the theory of debt governance, but also finding out the inefficiency of its application in China to put forward some necessary advice.Corporation financing is an important area of modern micro financing theory research. Debt financing is one of most patterns of corporate outside financing. Debt financing structure mainly is the proportion relation of bank loans, corporation bonds, tenancy and other debt implements, also including corporation debt financing term structure. The development of debt financing theory is implicated in procession of corporation financing. Corporate equity and debt form corporation financing structure. Bank loans and corporation bonds form corporation debt financing structure.Since Modigliani & Miller' research on corporation financing in 1958, the theory research mainly focus on proportion of equity and debt. However, little research was about debt financing, especially about China's debt financing. The paper will focus on this theory area.China began to establish stock market in 1990's, but corporation still mainly depended on debt financing according to bank systems. Also China is a developing economic, corporation debt financing is unbalance. It not only showed that had no corporation bonds market and most dependent on bank, but also it will worsen the problem caused by financing restriction system, solicitation of financing crisis.At present the research of corporation financing in our country focus on several aspects. Firstly, the research of equity financing is evolving stock market mostly. Secondly, most of the research was established on macroeconomic, but little on micro aspect. Thirdly, most of research was about corporation governance.The author tried to do some significant job and the article has the following several conclusion and creation. We focus on debt finance, the subdivision of corporation finance structure theory, and put forward new opinions in research frame. It will be useful to do more jobs in this area. The research route of this paper will focus on debt financing problem in the frame of corporation financing structure theory.Firstly, the article will tire the afterwards research paper, seeking the article's academic basis, then synthesizing research harvest, uniting information economics, industry economics to form the paper's frame. Secondly the selection of corporation debt financing patterns will be done. As two main debt-financing patterns, bank loans and corporation bonds' basis and roles are different. Thirdly the debt structure at several patterns selection is important. Lastly I will study some important problems about china's debt financing. China's corporation still mainly depended on debt financing according to bank systems. Also China is a developing economic, corporation debt financing is unbalance. In the process of analysis problems, the article will not only consider the theory frame but also with an eye to china's practical to give more rational advice.The character has six chapters, mainly contain theory, practical and policy research, in which part two is literature summarization, part three, four and five compose the theory research portion. It spread from the best debt level, debt mode choice and debt structure in many financing modes choice. The last portion will research on China's debt financing and give some policy advice.