The Effect Of Shareholding In Financial Institutions On Asset Structure And Debt Maturity Structure

Under the background of China’s current economic downward pressure, traditional industries’ business is in difficulty and their rate of return per capital declines, which leads to more industrial capital seeking for financial layout. Many listed companies established finance companies, or holding shares of banks, securities, insurance, trust etc. to layout financial industry. Under the boom of enterprise’s ownership of financial institutions, this paper studies the effects of the ownership of financial enterprise to the listing companies’capital structure and debt maturity.First of all, this paper reviews and sums up the theory of capital structure and debt maturity, influencing factors and the effects of ownership of financial institutions to the enterprise; secondly, this paper analysis the nearly ten years non-financial enterprises asset-debt ratio and debt maturity in China. Thirdly, this paper puts forward two hypotheses according to the relevant theories:1. Shareholding of financial institutions and corporate liabilities rate are negatively correlated; 2. Shareholding of financial institutions and the proportion of the company long-term debt are positively correlated.In the part of empirical research, this paper select non financial listed enterprises’ financial data as samples. The selection of this period is based on two reasons:1.The State Council began to encourage industrial capital ownership of financial corporate holdings in 2010, and after then the enterprises’ shareholdings of financial institutions began to increase, which can make our paper have a certain research significance; 2. Chinese listed companies’capital structure and debt maturity structure between 2010-2014 did not occur some structural changes, which can guarantee the accuracy of the results. Finally, this paper puts forward hypothesis according to the relevant theory, uses China’s non-financial listed companies between 2010 and 2014 as samples and panel data, studying the effects of holding shares of financial enterprises of listed companies’ capital structure and debt maturity, and draw the empirical results. This paper makes an economic explanation to the empirical results and puts forward some relevant policy recommendations.The conclusions are as follows:1. Holding shares of financial enterprises can improve expectation of the companies’ ability to obtain funds and capital, thereby optimizing the company’s capital structure and reducing its asset-liability ratio,which improves the stability of the company’s financial.2. Holding shares of financial enterprises can significantly improve its long-term debt financing capacity and improve its debt maturity structure.3.As the controlled variables, the company’s asset-debt ratio significantly negatively correlated with corporate property, profitability, default risk, and significantly positive correlated with the company size, asset maturity, default risk and free cash flow.4.As the controlled variables, the company’s long-term debt ratio significantly negatively correlated with the risk of default, free cash flow, and significantly positive correlated with the size of the company, the duration of the asset, the risk of default, and the asset-liability ratio.