Debt Governance Effect Research Of Listed Companies In Our Country

The modern capital structure theory indicates that the capital structure plays an important role on corporate governance, different modes of financing have different governance effects. Debt is one of the important modes of financing of a listed company, research on the governance effects of debt contract has received more attention in recent years. In China, studies on this topic is still in the primary stage, mainly concentrates on the relationship between debt financing and the performance of the company, lacking a perspective and systematic research. Most of the debt is regarded as "homogeneous", neglect the different effects of different debt with different source and maturity on corporate governance. From the perspective of agency costs, this paper tries to study the governance effects of debt on agency cost, which includes equity agency costs and the agency costs between the controlling shareholders and minority shareholders, to distinguish the different influences of types and different terms of the debt, and judge the dynamic changes of the governance effects.Firstly, the author tries to re-understand the contractual governance effects of debt in theory, teasing up the capital structure theory, debt contract management related theory in this paper, established the theoretical basis of empirical research.Secondly, using a panel data of460samples of the listed companies from2005to2010, the paper makes an empirical analysis to verify the inhibition of debt on the two kinds of agency cost, and further analyzes the sources and maturity structure of debt management, and whether the governance effect of debt under the background of the new financial regulation is improved. The empirical results show that:(1) Overall, the debt financing of the listed companies in our country did not play the corresponding management role, the relationship between asset-liability ratio and the two kinds of agency costs and present weak positive correlation;(2) From the perspective of debt source, there’s significantly positive correlation between bank loans and the agency cost, a significant negative correlation between commercial credit and agency cost, and no significant relationship between the enterprise bond and agency costs;(3) From the perspective of debt maturity, short-term debts and agency cost are significantly positive related, the relationships between long term liabilities and the agency costs are not significant;(4) From the perspective of time, the debt governance effect of listed companies in China has improved. Finally, according to the actual situation in our country that the debt constraint is soft, the bond market is underdeveloped, the bankruptcy mechanism is not sound, and the contract design is not perfect, for the listed company to further improve debt governance effect, and optimize debt policy, this paper presents some policies and recommendations.