Research On Executive Incentives,Enterprise Life Cycle And Debt Term Structure

In recent years,China has continuously attached importance to the control of corporate risks,from “the deleveraging rate” in 2015 to “the prevention and resolution of major risks” in 2017,China's asset-liability ratio fell by 1.63% from 2012 to 2018,but Chinese society Wang Gang,director of the Institute of Finance at the Academy of Sciences,said at the "2017 International Monetary Forum" that the real economy's leverage reduction is not simply to reduce the leverage ratio,but to adjust the maturity structure of the debt and replace the current liabilities with medium and long-term liabilities.” Long-term funds can help companies to fully exert their capital functions,obtain continuous cash flow,and reduce the pressure of debt repayment,which is conducive to the survival and development of enterprises.In the study of existing debt maturity factors,whether it is internal control effectiveness,capital structure,assets scale or corporate governance,and ultimately it is attributed to people who play a vital role.And the middle and senior managers of an enterprise often determine the company's development strategy and resources,the company's future debt maturity structure and risk management control attitude.It has a huge impact.Therefore,research on executive incentives and debt maturity structure has certain practical significance,that is,how to further affect corporate risk by influencing people.Combining listed companies is not in the same development stage,and the relationship between the two cannot be generalized.Therefore,the research based on the life cycle stage is more targeted to how the enterprise can effectively promote the spontaneous and internal ability of the company to obtain long-term loans and the creditors are willing to provide long-term funds to improve the debt maturity structure.Also,it is of great significance to fight against the major risks.This paper selects the data of A-share listed companies from 2014 to 2018 as the research sample,and uses empirical analysis method to explore the relationship between executive incentive and debt maturity from the perspective of corporate life cycle.It is found that,first of all,the relationship between monetary compensation and debt maturity structure in the overall sample is inverted U,that is,when monetary compensation is at a low or high level,it is not conducive to the company to obtain long-term loans,and appropriate monetary compensation can improve the debt maturity structure of the company;equity incentive and on-the-job consumption can improve the debt maturity structure;Secondly,in the samples of enterprise life cycle,there are some differences in the influence of the three incentive methods on the debt maturity.The specific performance is that in the Growth period and maturity period,the impact of monetary compensation on debt maturity is still non-linear,and equity incentive and in-service consumption maintain a positive relationship with debt maturity;in the recession period,the main influencing factors of debt maturity are in-service consumption and monetary compensation,but in-service consumption is still significantly positively correlated with debt maturity structure,the latter only shows a negative linear relationship.This paper combines monetary compensation,equity incentive and on-the-job consumption to break the research of single incentive on debt maturity,further enriching the relevant literature in the field of executive incentive;at the same time,it explores the dynamic evolution law of the two with the enterprise life cycle,aiming to break through the static research framework of the existing literature.How to give full play to the compensation portfolio in a more targeted way to better enable executives to reduce debt risk spontaneously in the development stage of enterprises.And improve the willingness of creditors to provide long-term loans,which provides theoretical evidence for enterprises to optimize the debt maturity structure.