Research On Nature Of Property、Debt Structure And Debt Restructuring

Financing mode can be divided into debt financing and equity financing according to the different financing structure of listed companies. When companies introduce debt financing,under the influence of various external factors, in case the debt investments does not receive a good return or companies mismanagement, the companies will face difficulties in repaying the debt. In which case, the creditor and the debtor will handle debt in a timely manner. There are two kinds of treatments: one is through legal channels, forcing enterprises to bankruptcy liquidation; another is debt restructuring. Because the liquidation costs are generally very high, therefore, in order to maximize the probability of creditor debt recovery and minimize the probability of company’s bankruptcy, debtors and creditors are likely to choose corporate debt restructuring.Debt financing is a prerequisite for debt restructuring, and debt financing will produce a certain effect of corporate governance. Originator of agency theory Jensen and Meckling (1976) propose the agency cost theory of capital structure, indicate that there is a negative correlation between the manager agency cost and the equity agency costs, with the changes in the proportion of equity and debt. The increase in debt will have some impact on equity agency costs:In the case of an established investment unchanged, debt increased the shares held by managers while reduced the agency costs of equity "dilution" generated."Free cash flow" hypothesis that debt has a hard binding, such as debt servicing must rights litigation and bankruptcy debt and other applications, reducing the use of free cash flow managers, thereby reducing the likelihood of managers working consumption. Agency theory pioneered the creditors involved in debt management precedent, pointed out that as a legally binding contractual obligations, the creditor can encroach on the behavior of managers and controlling play East supervision and restraint effect on agency costs, and having some oversight effect on agency costs.Therefore, there is a symbiotic relationship between the debt financing behavior, debt management and debt restructuring scale.In reality, the company’s debt is not always homogeneous. The companies generally have different maturity and source structure of the debt.In accordance with the debt maturity structure, the debt can be classified as short-term debt and long-term debt; according to sources of debt obligations, the debt may be classified as operating debt and financing debt. Different structures of debt have different corporate governance effect, and have some impact on the company’s overall operations, and ultimately will have some impact on the size of the company’s debt restructuring. Based on our environment and institutional context of emerging and transition period, the government, banks, enterprises have different "treatment" to the different ownership properties listed companies. When listed companies face financial difficulties, the different "treatment" is more significant. Due to the presence of SBC, state-owned enterprises encountered financial difficulties, the government will generally give the "hidden" debt restructuring, such as financial discount, contract extension, stop losses and so on. If this does not save the state-owned listed companies, the "significant of "debt restructuring will be implemented. As for the non-state-owned company, it can not enjoy such preferential treatment in the event of financial distress, more explicit debt restructuring is carried out. So this article analyzed the impact of debt maturity structure and debt sources structure on the company’s size of debt restructuring which is be affected financially troubled. While in the study of the relationship between the debt structure and the size of the debt restructuring, this article also joined the nature of property rights, studying the ownership between the debt structure and the size of the debt restructuring will be strengthened or weakened not, under the background of the nature of different ownership.Through theoretical analysis and empirical studies of the relationship between the debt structure and the size of the debt restructuring, the results showed that: there is an positive correlation between the short-term debt and the size of the debt restructuring, while there is a negative correlation between the long-term debt and the size of the debt restructuring; And there is a significant positive correlation between debt restructuring and financing debt, there is a significant negative correlation between debt restructuring and operating debt; After adding the nature of the ownership of external factors, the results showed that:the different nature of the real property listed company have certain impact on the relationship between the size of the debt structure and the size of the debt restructuring. Compared with non-state-owned enterprises, the state-owned enterprises’ positive correlation between the size of the debt restructuring and the short-term debt weakened; Compared with the state-owned enterprises, negative correlation between long-term debt and debt restructuring among non-state enterprises also weakened; In addition, compared with the state-owned enterprises, negative correlation between operating debt and debt restructuring among non-state enterprises has increased; and compared with non-state-owned enterprises, a positive correlation between the size of the debt restructuring and financing debt among state-owned enterprises weakened.The innovation of this paper are about three points:First, different from past research literature that mainly research the impact of overall debt on the debt restructuring through asset-liability ratio, this paper mainly study the impact of different structures and different sources of debt maturity structure on the debt restructuring from the perspective of debt heterogeneity; Second, previous studies mainly research on the probability of debt restructuring, while the research of this paper is mainly about the scale of the debt restructuring, which studies the influence of different debt structure on the scale of debt restructuring; Third, the study also joined the nature of the property rights system background factors, studying the ownership between the debt structure and the size of the debt restructuring will be strengthened or weakened not, under the background of the nature of different ownership.Researching on the relationship between the size of the debt structure and debt restructuring is also conducive to reasonable arrangements for the company’s debt structure, emphasising on corporate should chose the debt covenants which is consistent with business development strategy or to ensure the maximization of corporate value,so that will help the company to maintain long-term sustainable development.