China Dilated Listed Corporate Debt Maturity Structure Mismatch Risk And Countermeasures

Since the late 1990s, the rise of the Department of Movement has maken the emergence of a large number of enterprises Family, they are known as large in scale, faster rate of expansion, as well as accompanied by complex and fragile financing chain and poor ability of self-adjustment. These weaknesses were exposed completely during the macro-control in 2004; In order to control the scale of fixed assets investment, the state introduced a series of national monetary policy to reduce money supply and control the scale of loans. These initiatives directly led to the explosion of these listed companies' financial crisis and the collapse of the major enterprises Family, such as Drilon, GreenKel and so on. What caused these expanding enterprises' financial crisis broken out and how do Chinese enterprises choose the future development strategy have become lingering in scholars and entrepreneurs' minds.On the basis of reading a lot of literature home and abroad, this paper proposes the view that debt maturity structure mismatch of these enterprises is one of the basic reasons of the financial crisis; To prove this point, the paper adopts two samples, one includes failure listed companies, the other includes normal listed companies, and raises the assumptions of assets' characters, the overall strength of the company and the financial risk assumptions and Free Cash Flow Hypothesis, and adopts the debt-to-asset ratio (LEV), the maturity structure of assets (LASSETMAT), the Z value, F value and Free Cash Flow (FCF) as explanatory variables, and in accordance with the financing structure of debt of our corporates, we acknowledge the long-term bank borrowings accounted for bank borrowings as the supporting debt maturity structure as well as the debt maturity structure (LDEBTMAT). And then, contrast the multivariate linear regression results of failure samples and normal samples, eventually conclude that the dilated enterprises have: (1) the mismatch of a relatively short period of the debt and a longer maturity of assets; (2) the mismatch of a shorter period of the debt and the higher financial leverage; (3) the mismatch of the weak financial strength and the debt maturity structure; (4) the mismatch of a shorter period of the debt and the weak capacity of creating cash. This paper proves that the mismatch of debt maturity structure is one of the major reasons. To achieve the purpose of this paper, that is, to provide a bit of useful advice to the future of China's financial system and enterprise development, based on the analysis of the external factors and internal factors which lead to the mismatch of debt maturity of dilated companies, proposes three measures: (1) to intensify the reform of commercial banks, and perfect commercial bank loans; (2) improving the country's capital market mechanism, the development of long-term bond market; (3) The Industrial enterprises should rely on industry and slow down the speed of development and improve their abilities to withstand risks.