Legal Environment,social Capital And Corporate Debt Financing

Money is like the lifeline of an enterprise,which plays an extremely important role in the survival and development of an enterprise.Financing is not only an important means for enterprises to obtain funds,but also a prerequisite for the survival and development of any enterprise.Debt financing,as one of the main ways of financing enterprises,is of great significance to the development and governance of enterprises.Throughout most of the existing debt financing theory,most of those focused on the company’s Financial characteristic,such as corporate profitability,corporate size,corporate growth and so on,economic system,corporate governance and other formal system which influence on corporate debt financing,there are the defects which are lack of "socialization",and corporate financing activities are always embedded in the social relation network,also must be trust,cooperation,networking,relationship and so on.The influence of informal institution.Therefore,it is necessary to introduce the informal system of social capital in order to study corporate debt financing.As a kind of informal social system,social capital are helpful to alleviate the information asymmetry between the creditors and the debt,enhance each other’s trust,and it plays a positive role in enterprise’s debt financing promoting.And considering the emerging/transition of market economy in our country,the listed company lie in a relatively weak legal environment,and social credit consciousness is weak,so many phenomenona which curbing the development of debt markets are widely exists in.Based on this,this article attempts to the microcosmic perspective,from the enterprise debt financing in our country differences in legal environment as the background,by using the factor analysis method to get the comprehensive factor to explain social capital variables,the empirical test whether there is a trade-off between social capital and the legal environment.This article selects datas which the Shanghai and shenzhen stock market in 2010-2015 non-financial listed companies as research samples,based on the weak legal environment of our country,discusses its influence on social capital enterprise debt financing two relations.Research findings :(1)social capital is positively correlated with corporate debt financing;(2)social capital is positively correlated with the maturity structure of corporate debt;(3)the legal environment is positively correlated with the scale of corporate debt financing;(4)the legal environment is positively related to the corporate debt maturity structure;(5)there is an alternative relationship between legal environment and social capital in the impact on the scale of corporate debt financing.(6)there is an alternative relationship between legal environment and social capital in terms of the impact on the structure of corporate debt maturity.Based on the above conclusions,this paper get the following enlightenment: Firstly,it can make the enterprises realize that enterprises want to solve the problem of financing difficulties,on the one hand they can hope that the credit policy of the country,on the other hand,they must develop the social capital of the enterprises,especially to establish stable trust relationship with Banks.Secondly,our government should strengthen the legal system so that they can provide a good system guarantee for enterprises’ debt financing activities.Finally,the conclusion of this article provides new evidence for the current popular "China mystery",our country faces a weak legal environment,economic reform and opening up 30 years,however,has made rapid development,the reason may be that China’s enterprises,especially private enterprises to develop the enterprise social capital,in order to obtain the funds needed for the survival and development.