The Determinants Of Corporate Long-term Debt

The determinants of corporate debt are always priority part in capital marketstudy .Under the situation that information is asymmetric between the manager andthe creditor, it is still a very complicated problem to keep balance between assetsliquidity and profitability. Since working capital occupying very important position incorporate operation, the relationship between working capital and corporate debt isespecially assignable. In China, what is the relationship between corporate long-termdebt and working capital management? Based on the main study of influencing factorof corporate long-term debt in the past , we adopt Chinese listed corporate inmanufacturing industry appearing in the Shenzhen-Shanghai stock market to be oursample, and carried out the very study by multivariate regression analysis. In ourpositive investigation, we found that:(1) Working capital policy (radical tactics or not), make corporate easier to get thecorporate long-term debt.(2) The rise of non-cash working capital related to corporate long-term debtnegatively.(3) The relationship between corporate receivable,inventory and long-term debt arepositive.(4) Corporate Payables have negative influence upon corporate long-term debt.