Equity Property,Corporate Debt Characteristics And Credit Risk

The research on debt financing and credit risk has always been the focus of scholars.Debt financing is not only an important source of corporate capital,but also has the role of tax reduction,which can play a role in the management of the company's constraints and incentive managers.However,due to China special political system and system background,and high uncertainty in the economic transition period,the Chinese enterprise debt financing has obvious “Chinese Characteristics”,characteristics of debt compared with foreign enterprises there is a big difference.In China,the current financial system is mainly composed of four major state-owned banks have led,state-owned property companies usually have the “Invisible Government Credit” natural credit financing advantages,can get more financial resources than other enterprises,bears less debt service pressure,and banks and creditors were also more willing to have these with the government closely related enterprises to provide loan.On the other hand,since the 2008 global financial tsunami,there is a mismatch between the Chinese plus investment mode and bank oriented financial system two,and a decline in China the adjustment of economic structure and economic growth,the credit risk has increased,and the event of default on the true meaning of the Chinese bond market but less.However,there are at least a dozen companies have reached the brink of default,these enterprises have a common characteristics,namely the equity is “state-owned property”,or “private equity” although its properties,but the local government has a very close relationship,is protected by the government,and by those the state-owned property of the enterprise be roughly the same treatment.It can be seen that the equity attributes will not only affect the characteristics of corporate debt,but also affect the credit risk of corporate debt financing behavior.Therefore,this paper will be based on a number of dimensions to measure the characteristics of corporate debt,and on this basis,the focus of the study of the relationship between equity property,debt characteristics and credit risk.In this paper,Shanghai and Shenzhen A-share listed companies between 2010 and 2015 data as the research object,and from the debt financing level,debt maturity structure and debt source to study the debt characteristics of enterprises,makes use of empirical analysis to research the relationship between equity property and debt characteristics,the relationship between debt characteristics and credit risk,and the regulating function of equity property.The main content of this paper is divided into five parts.The first part is the introduction.It mainly introduces the research background,the research significance,the structure of the article and the research methods,and summarizes the two aspects of the characteristics,domestic and foreign equity property and corporate debt and corporate debt credit risk literature features.The second part is the related basical theories.It mainly introduces the tradeoff theory,the asymmetric information theory and the creditor protection theory.The third part is that analysis on the relationship between equity property and corporate debt characteristics.This part analyzes the relationship between equity property and debt financing level,the relationship between equity property and debt maturity structure,and the relationship between equity property and debt sources.The study finds that equity property affects debt financing level,debt maturity structure,debt source.For specific performance,compared with the non-state-owned enterprises,equity of state-owned properties enterprises have a higher level of debt financing,tend to choose to hold more long-term debt,but also tend to choose to hold more bank loans,and hold less commercial credit.The fourth part is that analysis on the relationship among equity property,debt characteristics and credit risk.This part analyzes the relationship between debt financing and credit risk,the relationship between debt maturity structure and credit risk,and the relationship between debt sources and credit risk,and the regulating function of equity property.The study finds that debt financing level has significant positive correlation with credit risk,debt maturity structure has significant negative correlation with credit risk,bank loans has significant negative correlation with credit risk,commercial credit has significant positive correlation with credit risk.In addition,equity property has a moderating effect on the relationship between corporate debt characteristics and credit risk,that is,compared with the non-state-owned enterprises,debt financing level of state-owned enterprises has greater impact on credit risk,debt maturity structure of state-owned enterprises has has a greater impact on credit risk,bank loans of state-owned enterprises has more influence on the credit risk,and commercial credit of state-owned enterprises has less influence on the credit risk.The fifth part is the last word.This part summaries the main conclusions,and points out the imitations of this study and the direction of further research.